2013 I n t e r n a t i o n a l Te l e c o m m u n i c a t i o n Measuring Information Society Printed in Switzerland Geneva, 2013 ISBN 978-92-61-14401-2 Photo credits: Shutterstock Measuring the Information Society the *38501* U n i o n 2013 I n t e r n a t i o n a l T e l e c o m m u n i c a t i o n U n i o n Measuring Information THE Society 2013 © 2013 ITU International Telecommunication Union Place des Nations CH-1211 Geneva Switzerland Original language of publication: English. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the International Telecommunication Union. ISBN 978-92-61-14401-2 ii Foreword I am pleased to present to you the 2013 edition of Measuring the Information Society (MIS). Now in its fifth year, this annual report identifies key ICT developments and tracks the cost and affordability of ICT services, in accordance with internationally agreed methodologies. Its core feature is the ICT Development Index (IDI), which ranks countries’ performance with regard to ICT infrastructure and uptake. The report aims to provide an objective international performance evaluation based on quantitative indicators and benchmarks, as an essential input to the ICT policy debate in ITU Member States. The 2013 edition also presents the latest results of the ICT Price Basket (IPB), and the first complete price data set for mobile-broadband services; the first-ever model to measure the world’s digital native population; and a quantitative assessment of recent digital TV broadcasting trends. Over 250 million people came online over the last year, and almost 40 per cent of the world’s population will be using the Internet by end 2013. Mobile technology and services continue to be the key driver of the information society, and the number of mobilebroadband subscriptions is close to 2 billion. Mobile-broadband networks are allowing more people to connect to highspeed networks and benefit from a growing number of applications and services. While both fixed- and mobile-broadband speeds continue to increase, the price of services is falling and ICTs are becoming more affordable: in the space of four years, fixed-broadband prices have dropped by an impressive 82 per cent. At the same time, the report also shows that ICT uptake remains limited in many developing countries, and particularly in the world’s least connected countries (LCCs) – a group of 39 countries (home to 2.4 billion people) with particularly low levels of ICT development. In this group of countries, ICTs can become key enablers for achieving international and national development goals and have the greatest development impact, and more policy attention needs to be directed towards them. Young people all over the world are the most active users of ICTs. For the first time, a model has been developed to estimate the number of digital natives - the young people with solid ICT experience who are drivers of the information society. While 30 per cent of the youth population are digital natives today, the report shows that within the next five years, the digital native population in the developing world is expected to double. The report also sheds new light on the latest digital TV broadcasting trends, another key driving force of the growing information society. The TV industry has undergone an important shift during the past few years and, in 2012, the number of households with digital TV overtook the number of households with analogue TV. This achievement reinforces the dual role of TV broadcasts: fulfilling some of the public services associated with communications and being a major market for private content creators, distributors and networks. I trust that the data and analysis contained in this report will be of great value to the ITU membership, including policymakers, the ICT industry and others working towards building an inclusive global information society. Brahima Sanou Director Telecommunication Development Bureau (BDT) International Telecommunication Union iii Acknowledgements The 2013 edition of Measuring the Information Society was prepared by the ICT Data and Statistics Division within the Telecommunication Development Bureau of ITU. The team included Susan Teltscher (Head of Division), Vanessa Gray, Esperanza Magpantay, Doris Olaya and Ivan Vallejo. The following consultants to ITU provided substantive inputs: Lisa Kreuzenbeck, Michael Best (Chapter 4), and Simon Murray (Chapter 5). Fernando Callorda, Diana Korka, Christoph Stork and Shazna Zuhely contributed to the compilation of data sets on prices. Helpful inputs and suggestions were received from the following ITU colleagues: Istvan Bozoski, Pham Hai, Aurora Rubio, Sameer Sharma, Anne Rita Ssemboga and Marcelino Tayob. The work was carried out under the overall direction of Cosmas Zavazava, Chief, Project Support and Knowledge Management Department, Telecommunication Development Bureau. The report includes data from Digital TV Research, Eurostat, OECD, IMF, UNCTAD, the UNESCO Institute for Statistics, the United Nations Population Division and the World Bank, which is greatly acknowledged. ITU also appreciates the cooperation of countries that have provided data included in this report. The report was edited by Anthony Pitt and Bruce Granger, ITU English Translation Section. The desktop publishing was carried out by Nathalie Delmas, and the cover was designed by Céline Désthomas. Administrative support was provided by Herawasih Yasandikusuma. v Table of contents Foreword.................................................................................................................................................................................................................iii Acknowledgements.............................................................................................................................................................................................v Table of contents................................................................................................................................................................................................ vii Chapter 1. Introduction.......................................................................................................................................................................................1 1.1 Recent trends in ICT developments ...........................................................................................................................................................................1 1.2 Overview of the report...................................................................................................................................................................................................... 13 Chapter 2. The ICT Development Index (IDI)............................................................................................................................................17 2.1 Introduction to the IDI....................................................................................................................................................................................................... 17 2.2 Global IDI analysis................................................................................................................................................................................................................. 22 2.3 Monitoring the digital divide: developed, developing and least connected countries........................................................... 39 2.4 IDI sub-indices: access, use and skills....................................................................................................................................................................... 44 2.5 Regional IDI analysis............................................................................................................................................................................................................ 53 Chapter 3. Measuring the cost and affordability of broadband .......................................................................................................77 3.1 Introduction ............................................................................................................................................................................................................................ 77 3.2 Fixed-broadband prices ................................................................................................................................................................................................... 78 3.3 Mobile-broadband prices................................................................................................................................................................................................ 92 3.4 Comparison of mobile-broadband with fixed-broadband and mobile-cellular prices......................................................... 105 3.5 The mobile-broadband sub-basket....................................................................................................................................................................... 110 Chapter 4. Measuring the world’s digital natives.................................................................................................................................127 4.1 Introduction.......................................................................................................................................................................................................................... 127 4.2 Review of the literature.................................................................................................................................................................................................. 129 4.3 Quantifying digital natives........................................................................................................................................................................................... 138 4.4 Analysis of the results...................................................................................................................................................................................................... 140 4.5 Conclusions........................................................................................................................................................................................................................... 156 vii Chapter 5. Digital TV broadcasting trends..............................................................................................................................................159 5.1 Growth of households with a TV.............................................................................................................................................................................. 162 5.2 The growth of digital TV................................................................................................................................................................................................. 163 5.3 TV reception by platform.............................................................................................................................................................................................. 168 5.4 TV reception by region................................................................................................................................................................................................... 179 5.5 Pay-TV reception ............................................................................................................................................................................................................... 185 5.6 Digital switchover ............................................................................................................................................................................................................. 188 5.7 Over-the-top Internet TV and video...................................................................................................................................................................... 192 5.8 Conclusions and recommendations...................................................................................................................................................................... 194 List of references...............................................................................................................................................................................................201 Annex 1. ICT Development Index (IDI) methodology.........................................................................................................................209 Annex 2. ICT price data methodology .....................................................................................................................................................217 Annex 3. Statistical tables of indicators used to compute the IDI..................................................................................................227 Annex 4. Statistical tables of prices used to compute the ICT Price Basket................................................................................235 viii List of charts 1.1 Global ICT developments, 2003-2013............................................................................................................................................................................. 2 1.2 Active mobile-broadband subscriptions, world and by level of development, 2007-2013, penetration (left) and annual growth (right)................................................................................................................................................................................................................. 2 1.3 Active mobile-broadband subscriptions, by region and level of development, 2013..................................................................... 3 1.4 Mobile data traffic, 2012-2017 (forecasts), total (left) and by end-user device (right)....................................................................... 4 1.5 Fixed (wired)-broadband subscriptions, world and by level of development, 2003-2013, penetration (left) and annual growth (right)................................................................................................................................................................................................................. 4 1.6 Fixed (wired)-broadband subscriptions, by region and level of development, 2013........................................................................ 5 1.7 Telecommunication revenues, world and by level of development, 2007-2011, total in USD (left) and annual growth (right)................................................................................................................................................................................................................................. 6 1.8 Annual investment (CAPEX) of telecommunication operators, world and by level of development, 2007-2011, total in USD (left) and annual growth (right).............................................................................................................................................................. 7 1.9 Households with Internet access, world and by level of development, 2003-2013, penetration (left) and annual growth (right)................................................................................................................................................................................................................................. 8 1.10 Households with Internet access, by region and level of development, 2013...................................................................................... 8 1.11 Households with a TV, a computer and Internet, by level of development, 2012.............................................................................. 9 1.12 Individuals using the Internet, world and by level of development, 2003-2013, penetration (left) and annual growth (right)...............................................................................................................................................................................................................................10 1.13 Individuals using the Internet, by region and level of development, 2013...........................................................................................10 2.1 IDI, world and by level of development.......................................................................................................................................................................40 2.2 IDI access sub-index, world and by level of development...............................................................................................................................40 2.3 IDI use sub-index, world and by level of development.....................................................................................................................................40 2.4 IDI skills sub-inde, world and by level of development.....................................................................................................................................40 2.5 IDI and GNI per capita.............................................................................................................................................................................................................43 2.6 IDI and IPB.......................................................................................................................................................................................................................................44 2.7 Countries with a national broadband plan................................................................................................................................................................49 2.8 IDI ranges and averages, by region, 2012....................................................................................................................................................................53 2.9 IDI values compared with the global, regional and developing/developed-country averages, Africa, 2012..................57 2.10 Mobile-cellular telephone subscriptions, Africa, 2011 and 2012.................................................................................................................59 2.11 IDI values compared with the global, regional and developing/developed-country averages, Arab States, 2012.....59 ix 2.12 Individuals using the Internet, Arab States, 2011 and 2012............................................................................................................................62 2.13 IDI values compared with the global, regional and developing/developed-country averages, Asia and the Pacific, 2012....................................................................................................................................................................................................................................62 2.14 Mobile-cellular telephone subscriptions, Asia and the Pacific, 2011 and 2012..................................................................................64 2.15 IDI values compared with the global, regional and developing/developed-country averages, CIS, 2012........................65 2.16 Households with Internet access, CIS, 2011 and 2012........................................................................................................................................66 2.17 IDI values compared with the global, regional and developing/developed-country averages, Europe, 2012..............67 2.18 Wireless-broadband subscriptions, Europe, 2011 and 2012...........................................................................................................................69 2.19 IDI values compared with the global, regional and developing/developed-country averages, the Americas, 2012....................................................................................................................................................................................................................................................70 2.20 Households with Internet access, the Americas, 2011 and 2012.................................................................................................................72 3.1 Fixed-broadband prices, as a percentage of GNI p.c. (left) and annual change (right), 2008-2012........................................79 3.2 Fixed-braodband median price per Mbit/s, in USD, world and by level of development, 2008 and 2012........................80 3.3 Fixed-broadband prices, as a percentage of GNI p.c., by level of development, number of countries, 2012..................81 3.4 Fixed-broadband prices, as a percentage of GNI p.c., by region, 2012.....................................................................................................83 3.5 Purchasing-power-adjusted fixed-broadband prices in the Africa region, 2012...............................................................................85 3.6 Purchasing-power-adjusted fixed-broadband prices in the Americas region, 2012.......................................................................87 3.7 Purchasing-power-adjusted fixed-broadband prices in the Arab States region, 2012...................................................................88 3.8 Purchasing-power-adjusted fixed-broadband prices in the Asia and the Pacific region, 2012................................................90 3.9 Purchasing-power-adjusted fixed-broadband prices in the CIS region, 2012.....................................................................................91 3.10 Purchasing-power-adjusted fixed-broadband prices in the Europe region, 2012............................................................................93 3.11 Mobile-broadband prices as a percentage of GNI p.c., world and by level of development, 2012.......................................97 3.12 Mobile-broadband prices, in USD, world and by level of development, 2012....................................................................................97 3.13 Mobile-broadband prices, in PPP$, world and by level of development, 2012..................................................................................98 3.14 Mobile-broadband prices, in USD, world, 2012....................................................................................................................................................104 3.15 Mobile-broadband prices per GB, in USD, world, 2012...................................................................................................................................105 3.16 Mobile-broadband and fixed-broadband prices, as a percentage of GNI p.c., world and by level of development, 2012................................................................................................................................................................................................................106 3.17 Postpaid fixed-broadband and postpaid computer-based mobile-broadband prices, as a percentage of GNI p.c., by region, 2012......................................................................................................................................................................................................107 3.18 Mobile-broadband and mobile-cellular prices as a percentage of GNI p.c., world and by level of development (left) and comparison (right), 2012..............................................................................................................................................110 x 3.19 Mobile-broadband sub-basket, as a percentage of GNI p.c., by level of development, number of countries, 2012..........................................................................................................................................................................................................................114 3.20 Relationship between the mobile-broadband sub-basket and mobile-broadband penetration, 2012..........................115 4.1 Digital natives as a percentage of total population, top countries (left) and bottom countries (right), 2012..............144 4.2 Relationship between digital natives as a percentage of total population and the IDI value................................................145 4.3 Digital natives as a percentage of total population, by region and level of development (left) and by income (right), 2012..............................................................................................................................................................................................................146 4.4 Population distribution by age group and gender, Egypt, 2010...............................................................................................................146 4.5 Percentage of population in the age group 15-24, by region and level of development (left), and income group (right), 2012..................................................................................................................................................................................................................147 4.6 Digital natives as a percentage of youth (15-24), by region and level of development (left), and by income group (right), 2012..................................................................................................................................................................................................................148 4.7 Percentage of digital natives among youth Internet users, 2012.............................................................................................................149 4.8 Ratio of youth (15-24) Internet usage to overall Internet usage, by region and level of development (left), and by income group (right), 2012..............................................................................................................................................................................150 4.9 Relationship between the ratio of youth (15-24) Internet users to overall Internet users (y-axis) and percentage of total population aged 15-24 (x-axis), by income group, 2012...................................................................................153 4.10 Relationship between digital natives as a percentage of total population and school enrolment, by education level, 2012............................................................................................................................................................................................................154 4.11 Relationship between digital natives as a percentage of total population, 2012 and primary enrolment, 2002......155 4.12 Relationship between digital natives as a percentage of total population and ratio of females to males in school enrolment, by education level, 2012..........................................................................................................................................................155 5.1 Households with a TV, world and by level of development, 2008-2012..............................................................................................162 5.2 Households with a TV, by region, 2008-2012.........................................................................................................................................................163 5.3 Top seven countries by number of households with a TV, 2012...............................................................................................................163 5.4 Households with digital TV, world and by level of development, 2008-2012...................................................................................165 5.5 Households with digital TV, by region, 2008-2012.............................................................................................................................................167 5.6 Top seven countries by number of households with digital TV, 2008 and 2012.............................................................................168 5.7 Households with a TV by type of technology, 2008-2012.............................................................................................................................169 5.8 Households with a TV by four main technologies, 2008-2012...................................................................................................................169 5.9 Households with only terrestrial TV broadcasting, by region, 2008-2012...........................................................................................170 5.10 Households with only analogue terrestrial TV broadcasting, by region, 2008-2012.....................................................................170 5.11 Number of countries by % of households with analogue terrestrial TV broadcasting, 2008-2012.....................................171 xi 5.12 Households with only DTT, by region, 2008-2012..............................................................................................................................................172 5.13 Households with CATV, by region, 2008-2012......................................................................................................................................................173 5.14 Households with digital CATV (left) and analogue CATV (right), by region, 2008-2012.............................................................173 5.15 Households with DTH satellite TV, by region, 2008-2012...............................................................................................................................175 5.16 Households with pay DTH satellite TV, by region, 2008-2012.....................................................................................................................176 5.17 Households with FTA DTH satellite TV, by region, 2008-2012.....................................................................................................................176 5.18 Households with IPTV, by region, 2008-2012........................................................................................................................................................177 5.19 Households with a TV by type of technology, Africa, 2008-2012..............................................................................................................179 5.20 Households with a TV by type of technology, Arab States, 2008-2012.................................................................................................181 5.21 Households with a TV by type of technology, Asia and the Pacific, 2008-2012...............................................................................181 5.22 Households with a TV by type of technology, CIS, 2008-2012...................................................................................................................182 5.23 Households with a TV by type of technology, Europe, 2008-2012..........................................................................................................183 5.24 Households with a TV by type of technology, Americas, 2008-2012......................................................................................................185 5.25 Households with pay TV, world and by development level, 2008-2012...............................................................................................186 5.26 Households with pay TV, by region, 2008-2012...................................................................................................................................................187 5.27 Pay-TV subscriptions by technology, 2008 and 2012.......................................................................................................................................188 5.28 Households with DTT, world and by level of development, 2008-2012...............................................................................................189 5.29 Households with DTT, by region, 2008-2012.........................................................................................................................................................190 5.30 Households with pay DTT, Africa and Europe, 2008-2012.............................................................................................................................191 List of figures 2.1 Three stages in the evolution towards an information society.....................................................................................................................18 2.2 ICT Development Index: indicators, reference values and weights............................................................................................................21 2.3 IDI spider charts, selected dynamic countries, 2011 and 2012......................................................................................................................36 3.1 Mobile-broadband services by type of end-user device and plan.............................................................................................................93 3.2 Methodology for the mobile-broadband sub-basket......................................................................................................................................112 4.1 Distribution of digital natives across countries (absolute numbers), 2012.........................................................................................141 4.2 Digital natives as a percentage of total population, 2012.............................................................................................................................142 xii 4.3 Percentage of population in the age group 15-24, 2012...............................................................................................................................148 4.4 Ratio of youth (15-24) Internet users to overall Internet users, 2012......................................................................................................152 5.1 Main TV-distribution technologies...............................................................................................................................................................................161 5.2 DTT standard adoption by country, January 2013.............................................................................................................................................189 List of boxes 1.1 Monitoring the ICT gender gap........................................................................................................................................................................................12 2.1 ITU expert groups......................................................................................................................................................................................................................19 2.2 From active-mobile broadband to wireless broadband....................................................................................................................................20 2.3 Europe counts on ICTs: The Digital Agenda for Europe.....................................................................................................................................26 2.4 Smarter phones and faster networks are driving data usage and revenues in Australia..............................................................28 2.5 Competition pushes Costa Rica above the regional average........................................................................................................................31 2.6 Oman boasts second highest wireless-broadband subscriptions penetration in the region...................................................33 2.7 An ICT user profile from the United Arab Emirates...............................................................................................................................................34 2.8 Rural roll-out in Zambia..........................................................................................................................................................................................................35 2.9 The least connected countries (LCCs) – home to 2.4 billion people – are not making enough progress to reduce the digital divide........................................................................................................................................................................................................42 2.10 Abundant and secure international Internet bandwidth and fast broadband to protect and run Hong Kong (China)’s financial centre.............................................................................................................................................................................45 2.11 Kenya – largest amount of international Internet bandwidth per Internet user in Africa............................................................47 2.12 Cambodia’s heated mobile market.................................................................................................................................................................................48 2.13 Growth in broadband networks brings more Albanians online...................................................................................................................52 3.1 Data issues: Comparability and transparency..........................................................................................................................................................80 3.2 Rules applied in collecting mobile-broadband prices........................................................................................................................................94 3.3 Available mobile-broadband plans according to different monthly data allowances...................................................................96 3.4 To what extent are fixed-broadband and mobile-broadband prices and services comparable?........................................106 4.1 Youth and ICT: the BYN D 2015 Global Youth Summit....................................................................................................................................128 4.2 Survey depicts optimistic millennial generation that believes in the potential of ICTs..............................................................130 4.3 Digital native model..............................................................................................................................................................................................................139 xiii 5.1 Historic developments in TV broadcasting – North America and Europe..........................................................................................160 5.2 Measuring TV uptake............................................................................................................................................................................................................161 5.3 The ITU GE06 Agreement...................................................................................................................................................................................................166 5.4 The digital TV boom in Brazil............................................................................................................................................................................................184 List of tables 2.1 IDI values and changes, 2011 and 2012.......................................................................................................................................................................23 2.2 ICT Development Index (IDI), 2011 and 2012...........................................................................................................................................................24 2.3 Most dynamic countries – changes between IDI 2011 and 2012...............................................................................................................27 2.4 IDI by level of development, 2011 and 2012............................................................................................................................................................41 2.5 IDI by groups, 2011 and 2012.............................................................................................................................................................................................41 2.6 IDI access sub-index, 2011 and 2012.............................................................................................................................................................................46 2.7 Top ten economies with the greatest 2011-2012 change in the IDI access sub-index, by absolute value change (left) and rank change (right)............................................................................................................................................................................48 2.8 IDI use sub-index, 2011 and 2012....................................................................................................................................................................................50 2.9 Top ten economies with the greatest 2011-2012 change in IDI use sub-index, by absolute value change (left) and rank change (right)..........................................................................................................................................................................................................51 2.10 IDI skills sub-index, 2011 and 2012.................................................................................................................................................................................54 2.11 IDI by region, 2011 and 2012..............................................................................................................................................................................................55 2.12 The top five economies in each region and their ranking in the global IDI, 2012............................................................................56 2.13 IDI – Africa.......................................................................................................................................................................................................................................58 2.14 IDI – Arab States..........................................................................................................................................................................................................................60 2.15 IDI – Asia and the Pacific........................................................................................................................................................................................................63 2.16 IDI – CIS.............................................................................................................................................................................................................................................65 2.17 IDI – Europe....................................................................................................................................................................................................................................68 2.18 IDI – The Americas.....................................................................................................................................................................................................................71 3.1 Minimum advertised fixed-broadband speeds, percentage of countries, 2008 and 2012..........................................................79 3.2 Fixed-broadband prices, 2012............................................................................................................................................................................................82 3.3 Fixed-broadband prices ranges and averages as a percentage of GNI p.c., by region, 2012......................................................83 xiv 3.4 Fixed-broadband prices, Africa, 2012.............................................................................................................................................................................84 3.5 Fixed-broadband prices, the Americas, 2012............................................................................................................................................................86 3.6 Fixed-broadband prices, Arab States, 2012................................................................................................................................................................87 3.7 Fixed-broadband prices, Asia and the Pacific, 2012..............................................................................................................................................89 3.8 Fixed-broadband prices, CIS, 2012..................................................................................................................................................................................90 3.9 Fixed-broadband prices, Europe, 2012.........................................................................................................................................................................92 3.10 Mobile-broadband prices as a percentage of GNI p.c., by region, 2012..................................................................................................99 3.11 Mobile-broadband prepaid handset-based prices (500 MB), 2012.........................................................................................................100 3.12 Mobile-broadband postpaid handset-based prices (500 MB), 2012......................................................................................................101 3.13 Mobile-broadband prepaid computer-based prices (1 GB), 2012...........................................................................................................102 3.14 Mobile-broadband postpaid computer-based prices (1 GB), 2012.........................................................................................................103 3.15 Comparison of postpaid fixedbroadband and postpaid computer-based mobile-broadband prices, percentage of countries, by region, 2012................................................................................................................................................................108 3.16 Comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband plans in selected countries, 2012.....................................................................................................................................................................................................109 3.17 Mobile-broadband sub-basket and its components, 2012..........................................................................................................................113 3.18 ICT Price Basket and sub-baskets, 2011 and 2012..............................................................................................................................................116 3.19 Fixed-telephone sub-basket, 2011 and 2012.........................................................................................................................................................118 3.20 Mobile-cellular sub-basket, 2011 and 2012............................................................................................................................................................120 3.21 Fixed-broadband sub-basket, 2011 and 2012.......................................................................................................................................................122 4.1 Digital natives, 2012...............................................................................................................................................................................................................143 4.2 Internet user penetration, youth and total population, 2012.....................................................................................................................151 5.1 Countries that have assigned part of the digital dividend to mobile-broadband networks..................................................164 5.2 Prices of DTT set-top boxes (STB) in selected African countries, July 2013.........................................................................................180 5.3 Top 15 countries by percentage of households with pay TV, 2012.........................................................................................................187 5.4 BBC iPlayer requests by device, Q4 2010 – Q4 2012, millions.....................................................................................................................193 5.5 Netflix subscriptions by type of service, Q3 2011 – Q4 2012, millions...................................................................................................194 xv Measuring the Information Society 2013 Chapter 1. Introduction 1.1Recent trends in ICT developments regions. Reflecting the strong growth in mobile Internet uptake, As more and more people join the global information society will reach a penetration rate of over 40 per cent globally by end and high-speed communication networks become an indispensable infrastructure, the tracking and measurement growth in household access to the Internet has also accelerated over the past three years, mainly in the developing world, and 2013. As a comparison, this figure corresponds to about half the proportion of households worldwide that have a TV (almost of developments in information and communication 80 per cent penetration in 2012: see below and Chapter 5). technologies (ICTs) remain as relevant as ever. According Infrastructure trends – From ubiquitous mobile to ubiquitous broadband? to ITU estimates, there will be 6.8 billion mobile-cellular subscriptions by the end of 2013 – almost as many as there are people on the planet. While the ubiquitous availability of In view of the steep growth of mobile broadband and mobile-telephone services is undeniable, with close to 100 the widespread deployment of mobile infrastructure, per cent of the population covered by a mobile signal, not expectations are high that mobile-broadband services will everyone has a mobile phone. From a measurement point become equally as available as mobile-cellular telephony of view, the ongoing challenge thus remains to identify in the near future. Indeed, Ericsson forecasts that by 2018 those who are still left without access to ICTs. By end 2013, there will be 6.5 billion mobile-broadband subscriptions, there will be an estimated 2.7 billion people using the almost as many as there are mobile-cellular telephone Internet worldwide. In other words, there are still 4.4 billion subscriptions in 2013.1 people who are not yet online. Priority attention needs to be given to the unconnected, and action needs to be taken Today, almost all people on Earth live somewhere within to improve the accessibility and affordability of broadband reach of a mobile-cellular signal. Not all of those networks, Internet services everywhere in order to usher in an inclusive however, have been upgraded to 3G technology, which is information society. necessary to qualify as mobile broadband and provide highspeed access to the Internet. By end 2012, the percentage Over the past year, ICT deployment and uptake have continued of the world’s population covered by a 3G network was to grow worldwide (Chart 1.1). While growth in mobile-cellular around 50 per cent. penetration is flattening, reaching 96 per cent by end 2013, mobile broadband continues to grow strongly, on average In the large majority of countries, 3G services are now by around 40 per cent annually between 2010 and 2013. commercially available, at least in major urban areas. As Fixed-broadband uptake, on the other hand, is growing more networks are being upgraded and services accordingly slowly – at around 10 per cent compound annual growth rate offered in the market, mobile-broadband subscriptions (CAGR) – albeit steadily, across both developing and developed will continue to grow strongly. ITU estimates that, by end 1 Chapter 1. Introduction Chart 1.1: Global ICT developments, 2003-2013* Per 100 inhabitants/households 100 90 Mobile-cellular telephone subscriptions Households with Internet access 80 Individuals using the Internet 96.2 Active mobile-broadband subscriptions 70 Fixed-telephone subscriptions 60 Fixed (wired) broadband subscriptions 50 40 41.3 38.8 30 29.5 20 16.5 9.8 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013* Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 2013, there will be around 2 billion mobile-broadband subscriptions, corresponding to a global penetration rate of almost 30 per cent (Chart 1.2). Mobile broadband has been the fastest growing market segment over the past few years, with a 40 per cent average annual growth (CAGR) since 2007. It is growing rapidly not only in developed but also in developing countries, where subscriptions doubled over the past two years and now outnumber subscriptions in developed countries. Even in Africa, penetration rates will reach almost 11 per cent by end 2013, up from 2 per cent only three years earlier, and will continue to grow strongly (Chart 1.3). Differences between developed and developing countries remain substantial, however, with 75 per cent penetration Chart 1.2: Active mobile-broadband subscriptions, world and by level of development, 2007-2013*, penetration (left) and annual growth (right) 120 80 Developed World Developing 70 Developed 60 World 50 100 80 Developing % 60 40 40 30 29.5 20 19.8 Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 3* 2* 20 1 12 120 1 -1 * 1 -1 10 20 -1 0 09 20 2007 2008 2009 2010 2011 2012* 2013* 20 7- 0 08 08 -0 9 0 10 2 20 20 0 Per 100 inhabitants 74.8 Measuring the Information Society 2013 Chart 1.3: Active mobile-broadband subscriptions, by region and level of development, 2013* 80 74.8 67.5 70 Per 100 inhabitants 60 46.0 50 48.0 40 29.5 30 22.4 19.8 18.9 20 10.9 10 0 Africa Arab States Asia & Pacific CIS The Americas Europe Developing World Developed Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. in the former compared with 20 per cent in the latter borne in mind that countries are just starting to collect the (Chart 1.3). In developed countries, mobile-broadband data, and it is to be expected that the share will increase uptake continues to grow at double-digit rates and has in the future. For some countries, WiMAX is already quite not yet reached saturation, although a slowdown is to be significant, for example Bahrain, Pakistan and Nigeria, expected in the near future. A major difference between where about half the wireless-broadband subscriptions developed and developing countries is that, in developed are WiMAX subscriptions. countries, mobile broadband is often a complement to rather than a substitute for fixed-broadband access. In The use of Internet via wireless networks and devices will developing countries, mobile broadband took off in 2010, continue to grow strongly, accompanied and/or driven and penetration rates will have increased from 4.4 per cent by an ever-increasing supply of mobile applications and to almost 20 per cent by end 2013. services in the markets. An important trend highlighted in In addition to mobile-broadband services, a number of countries and operators, especially from the developing world, where fixed networks are very limited, have chosen to develop other wireless broadband services, in particular WiMAX services, which are now offered in almost 100 countries. In those countries, wireless Internet access – either through the mobile-broadband network or via fixed wireless or satellite – is often the only alternative to fixed previous reports (ITU, 2012a), and which will continue in the near future, is the shift from voice to data traffic. According to Cisco (2013a), global mobile data traffic grew by 70 per cent in 2012, to a level which corresponds to almost 12 times the entire Internet traffic in 2000. Half of the traffic was video traffic. Cisco forecasts that “global mobile data traffic will increase 13-fold between 2012 and 2017. Mobile data traffic will grow at a CAGR of 66 per cent from 2012 (wired) Internet access.2 to 2017, reaching 11.2 exabytes per month by 2017” (Cisco, For the time being, the difference between the number of smartphones, is closely linked to the spread of 4G services. mobile-broadband and wireless-broadband subscriptions While insignificant today,3 by 2017 4G is predicted to is small, globally speaking. This means that the share of account for 10 per cent of mobile connections and 45 per WiMAX subscriptions is very small, although it should be cent of total mobile traffic. 2013a) (Chart 1.4). The growth in traffic, mostly driven by 3 Chapter 1. Introduction Chart 1.4: Mobile data traffic, 2012-2017 (forecasts), total (left) and by end-user device (right) 11.2 12 12 Other portable devices (0.2%) Non-smartphones (1.4%) M2M (5.1%) Tablets (11.7%) Laptops (14%) Smartphones (67.5%) 10 Exabytes per month Exabytes per month 10 7.4 8 6 4.7 4 2.8 1.6 2 8 6 4 2 0.9 0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Note: Figures in legend (right chart) refer to traffic share in 2017. Source: Cisco VNI Mobile Forecast, 2013a. The strong growth in mobile data traffic puts enormous A large proportion of mobile data traffic will be offloaded pressure on mobile networks faced with limited on fixed (wired) networks, for example through WiFi spectrum. As the industry is constantly requesting connections (33 per cent was offloaded in 2012 according additional spectrum for mobile broadband such as 4G/ LTE, and in order to keep pace with demand, policymakers and regulators should consider adopting regulatory measures to promote flexible and effective to Cisco, 2013a). Since a lot of data activity takes place in households or other locations where fixed (wired)broadband and WiFi access is available, and since more and more devices used include WiFi capacity, data offloading will increase as well. This takes some of the pressure off mobile frequency-management tools such as spectrum trading networks, but at the same time requires improved fixed and refarming (ITU, 2013b). (wired) infrastructure. Chart 1.5: Fixed (wired)-broadband subscriptions, world and by level of development, 2003-2013*, penetration (left) and annual growth (right) 30 Per 100 inhabitants 25 Developed World Developing 70 27.2 60 50 Developed World Developing 20 40 % 15 30 10 9.8 20 5 6.1 10 0 20 12 *- 13 * 0 Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 4 Measuring the Information Society 2013 Chart 1.6: Fixed (wired)-broadband subscriptions, by region and level of development, 2013* 30 27.2 27.0 Per 100 inhabitants 25 20 17.1 13.5 15 9.8 10 7.6 6.1 5 3.3 0.3 0 Africa Arab States Asia & Pacific CIS The Americas Europe Developing World Developed Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. Fixed (wired)-broadband uptake continues to grow – albeit The strong link between broadband uptake and broadband more slowly than mobile broadband – at around 10 per affordability has been demonstrated in previous editions of this cent annual average growth between 2010 and 2013. report. ITU tracks the price of key ICT services annually, including Worldwide, growth is slowing owing to slower growth in the price of fixed-broadband services. The results show that the developed countries over the past three years, whereas price of fixed-broadband, measured as a percentage of GNI per growth in developing countries continues at double-digit capita, has fallen by 82 per cent over the past four years. The rates (Chart 1.5). drop is particularly remarkable in developing countries, partly In developing countries, the fixed-network infrastructure services are still unaffordable for most people in developing is much less widely deployed than in most developed countries, costing on average 30 per cent of GNI per capita. countries. This makes it much more costly to put in place fixed (wired)-broadband infrastructure, there being fewer or no existing networks that could be upgraded with highspeed technologies. Although fixed (wired)-broadband uptake is growing continuously – at 13 per cent annual growth over the past three years – and reflects the significant investments made in optical-fibre infrastructure in many developing countries, the fixed (wired)-broadband divide between developed and developing regions remains substantial. According to the latest ITU estimates, by end due to very high initial values. Nonetheless, fixed-broadband In 2012, ITU collected data on a number of different mobilebroadband plans and prices, in addition to fixed-broadband prices. A comparison of prices for fixed- and mobile-broadband services shows that, in developing countries, mobile broadband is cheaper than fixed broadband, on average. It is important to keep in mind, however, that many fixed-broadband plans now offer unlimited data volumes, whereas the mobile-broadband plans considered here are capped at 500 MB or 1 GB of data volume. A comparison of four typical mobile-broadband plans – for handsets and computers and for prepaid and postpaid 2013 fixed (wired)-broadband penetration will reach almost plans – shows that, in most countries, postpaid handset-based 10 per cent globally, 27 per cent in developed countries and plans are the cheapest and prepaid computer-based plans around 6 per cent in developing countries. In Africa, fixed are the most expensive. In other words, users pay less for a (wired)-broadband penetration remains below 1 per cent, monthly Internet subscription on their smartphone than for a compared with 27 per cent in Europe (Chart 1.6). USB prepaid card they can use with their laptops to connect 5 Chapter 1. Introduction to the Internet. These and other important findings on the 2010, spiking up to 11 per cent, and was sustained in 2011 cost and affordability of broadband are presented in Chapter with an 8 per cent increase. Developed countries, on the 3 of this report. other hand, saw no growth in revenues in 2010, recovering Revenue and investment trends in the telecommunication sector The size of the telecommunication market is increasing, in line with developments in terms of ICT access and uptake. From 2007 to 2011, total telecommunication revenues grew by 12 per cent, climbing to USD 1.8 trillion, or 2.6 per cent of world GDP. Over the same period, the developing countries’ share of total telecommunication revenues increased from 26 to 30 per cent, highlighting the growing importance of the telecommunication sector in its own right for the economic growth of the developing world. However, given only in 2011 with a 5 per cent increase. These data suggest that the adverse financial situation did indeed have an impact on telecommunication spending, particularly in developed countries, which took until 2011 to return to their 2008 revenue levels, whereas developing countries were less affected by the financial crisis. In both the developed and the developing world, subscriptions continued to grow between 2008 and 2009, thus proving to be resilient to adverse economic conditions, while telecommunication spending (and hence revenues) was more elastic. that the developing economies’ combined share of global Chart 1.8 shows the evolution of telecommunication GDP stands at around 35 per cent, there is still room for further operators’ capital expenditure (CAPEX), which is fundamental telecommunication sector growth in developing countries. for driving ICT developments. A peak was reached in 2008, Future revenue growth in developing countries could be with global investment totaling USD 290 billion, but this fuelled by accelerating broadband deployment, thereby was followed by two consecutive years of decline. Despite reaching more people, and by increasing the intensity of use of the upturn in 2011, the 2008 investment levels have thus telecommunication services, for instance through bundling. far not been restored. Chart 1.7 shows a decline in revenues from 2008 to 2009, Data on annual CAPEX growth rates show that developed coinciding with the global financial crisis. In the case of countries experienced the highest contraction between developing countries, growth immediately recovered in 2008 and 2009 (-16 per cent), but also the strongest recovery Chart 1.7: Telecommunication revenues, world and by level of development, 2007-2011, total in USD (left) and annual growth (right) 2'000 1'800 1'644 1'748 1'687 1'739 1'231 1'235 1'837 1'600 Billion USD 1'400 1'224 1'288 600 Developing 4 % 2 2008-09 0 400 200 World 6 World Developed Developing 800 Developed 10 8 1'293 1'200 1'000 12 420 460 455 504 544 -2 2007-08 2009-10 2010-11 -4 0 2007 2008 2009 2010 2011 -6 Note: ‘World’ includes 82 countries accounting for 94 per cent of world GDP. ‘Developed’ includes 33 developed countries accounting for 99 per cent of total GDP in the developed world. ‘Developing’ includes 49 developing countries accounting for 86 per cent of total GDP in the developing world. Source: ITU World Telecommunication/ICT Indicators database. 6 Measuring the Information Society 2013 Chart 1.8: Annual investment (CAPEX) of telecommunication operators, world and by level of development, 2007-2011, total in USD (left) and annual growth (right) World Developed Developing 350 290 300 249 264 Billion USD 250 200 172 196 253 250 166 163 Developed 20 World 15 Developing 10 176 150 100 25 5 2008-09 2009-10 % 0 77 93 88 87 89 -5 2007-08 2010-11 -10 50 -15 0 2007 2008 2009 2010 2011 -20 Note: ‘World’ includes 67 countries accounting for 87 per cent of world GDP. ‘Developed’ includes 31 developed countries accounting for 96 per cent of total GDP in the developed world. ‘Developing’ includes 36 developing countries accounting for 72 per cent of total GDP in the developing world. Source: ITU World Telecommunication/ICT Indicators database. in 2011 (+8 per cent). Investment in developing countries for increased investment in order to meet the needs of was more stable, with the highest decrease (-6 per cent) tomorrow’s information society and extend ICT services to occurring between 2008 and 2009, and a mild recovery in a larger proportion of the world’s population. 2011 (+2 per cent). This contrasts sharply with the growth rates in telecommunication operators’ CAPEX recorded prior to the global financial crisis: e.g. an increase of 21 per cent in developing countries and 14 per cent in developed countries between 2007 and 2008. Sluggish investment levels after 2008 are consistent with an overall economic environment of restricted access to capital markets, which may limit the capacity of operators to raise funds for new investments. With the expansion of global operators into new markets, many operators are active in both developing and developed countries, and the adverse financial environment in the developed world Consumer uptake trends In parallel with the increase in services and applications offered over the Internet and on mobile devices, an increasing number of people worldwide are using ICTs. Monitoring consumer uptake is important not only for the development of the content industry and Internet-based companies, but also for the development and delivery of online public services, such as e-government, e-education or e-health. The successful implementation of such services depends on having a critical mass of potential consumers online. has thus most probably also impaired investments in the A key basic indicator to monitor consumer uptake is the developing world. number of households with access to the Internet. The number of households with Internet access is increasing Insofar as the impact of an investment usually stretches in all regions, but large differences persist between beyond the specific year in which it is allocated, the current developed and developing countries, with penetration relatively lower levels of investment may restrict future rates set to reach almost 80 per cent in the former ICT developments, such as for instance those needed to compared with 28 per cent in the latter, by end 2013 (Chart improve international connectivity in developing countries 1.9). Nevertheless, in developing countries, the proportion or to boost the capacity of mobile-broadband networks of households with Internet access has increased from 12 in the developed world. This brings into focus the need per cent in 2008 to 28 per cent in 2013, which corresponds 7 Chapter 1. Introduction Chart 1.9: Households with Internet access, world and by level of development, 2003-2013*, penetration (left) and annual growth (right) 100 25 Developed World Developing Per 100 households 80 Developed World Developing 20 77.7 15 60 % 40 41.3 10 28.0 5 20 0 20 12 *- 13 * 0 Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. to a remarkable 18 per cent annual average growth rate. At the same time, the numbers also show that there A comparison across geographic regions reveals that by are 1.1 billion households worldwide that are not yet far the lowest household Internet penetration is found in connected to the Internet, and that 90 per cent of Africa. Indeed, the gap between Africa and Asia (the two these are in the developing world. In order to meet the regions with the lowest household Internet penetrations) target set by the Broadband Commission for Digital is substantial, with a penetration rate of 6.7 per cent in Development,4 40 per cent of households in developing the former compared with 32.7 per cent in the latter countries should have access to the Internet by 2015. If (Chart 1.10). growth rates continue at the same rate as during the past Chart 1.10: Households with Internet access, by region and level of development, 2013* 90 77.7 77.3 80 Per 100 households 70 60.8 60 45.7 50 41.3 40 32.7 33.6 28.0 30 20 10 6.7 0 Africa Asia & Pacific Arab States CIS Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 8 The Americas Europe Developing World Developed Measuring the Information Society 2013 Chart 1.11: Households with a TV, a computer and Internet, by level of development, 2012* TV Computer Internet 24% gap 100 Per 100 households 53% gap 67% gap 80 60 40 20 0 Developed World Developing Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. couple of years, there is a realistic chance that the target An additional interesting comparison is the proportion will be achieved. of households with a computer and Internet access and households with a television (Chart 1.11). Both require There are many reasons why households in developing access to electricity in order to function properly, and both countries are not (yet) connected to the Internet, primarily represent an expense for household budgets for acquiring related to the affordability and availability of Internet the equipment/service and/or for the monthly subscription services. With 53 per cent of the population in developing charges. As at end 2012, more than 80 per cent of countries living in rural areas, the infrastructure challenge households globally had a TV, compared with 41 per cent of to connect all of these people to high-speed Internet households with a computer and 37 per cent with Internet is enormous. With the continuous increase in wireless- access. The gap between households with a TV on the one broadband deployment and services, coupled with hand, and households with a computer and Internet, on falling prices, however, Internet access in households in the other, is much bigger in developing countries than in developing regions is expected to improve over the next developed countries. In the former, there are almost three few years. times as many households with a TV than households with a computer or Internet (a gap of 69 percent), while in the A comparison between households with Internet access and latter there are 1.3 times as many (a gap of 25 per cent). households with computers shows that the ratio has been falling steadily and is almost 1:1 in developed countries. In While household connections are important for ensuring Africa, the ratio is the highest (at 1:1.5), but has fallen sharply more inclusive and more frequent Internet access, people can since 2005, when it was almost 1:3. This also reflects the shift also access the Internet in other locations when household in the type of Internet access devices used in households, access is not available. This is particularly the case in rural areas which are no longer limited to computers, but increasingly of developing countries. Therefore, it is essential to track actual include other devices, such as smartphones. This raises new Internet usage (from any location). ITU estimates that, by end questions concerning the differences in ICT usage and 2013, almost 40 per cent of the global population, and 31 per impact related to ICT devices and the role of computers in, cent of the population in developing countries, will be online for example, building ICT skills. (Chart 1.12). Internet user penetration has been growing on 5 9 Chapter 1. Introduction Chart 1.12: Individuals using the Internet, world and by level of development, 2003-2013*, penetration (left) and annual growth (right) 90 Per 100 inhabitants 70 Developed World Developing 30 Developed World Developing 80 76.8 25 20 60 50 % 15 40 38.8 30.7 30 10 20 5 10 0 20 12 *- 13 * 0 Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. average at double-digit rates over the past ten years, but is services in many African countries, bringing Internet at lower slowing in developed countries, where penetration rates prices to customers already using handsets. In the world’s will reach almost 77 per cent by end 2013, compared with least developed countries (LDCs), the estimate is for fewer 31 per cent in developing countries. In Africa, Internet user than one in ten people to be using the Internet by end 2013. penetration has doubled over the past four years, and is set to climb to 16 per cent by end 2013 (Chart 1.13). This trend On the basis of the target set by the Broadband Commission is largely driven by the emergence of mobile-broadband for Digital Development, by 2015 at least 60 per cent of Chart 1.13: Individuals using the Internet, by region and level of development, 2013* 80 76.8 74.7 70 60.8 Per 100 inhabitants 60 51.9 50 38.8 37.6 40 31.9 30.7 30 20 16.3 10 0 Africa Asia & Pacific Arab States CIS Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 10 The Americas Europe Developing World Developed Measuring the Information Society 2013 the world population should be online, 50 per cent in improving with the introduction of LTE advanced – do developing countries and 15 per cent in LDCs. The target not replace fixed technologies for intensive, high-end was meant to be ambitious and, indeed, at current growth users. For them, the preferred option will therefore be a rates it is unlikely to be achieved. Even the somewhat high-speed fixed-broadband connection. On the other less ambitious target set by the World Summit on the hand, the mobility requirements of users also vary. A micro- Information Society (WSIS) in 2003, which calls for half entrepreneur who is on the move may prefer a mobile the population to have access to ICTs by 2015, will not be connection. achieved – in the case of Internet access – at current growth rates. Major efforts will have to be deployed in developing countries to make Internet more accessible and affordable to low-income groups, which account for the large majority In order to address these concerns and respond to consumers’ demands, operators need to upgrade their networks with technologies that provide higher bandwidth of consumers in developing countries. and speed in both wireless and fixed networks. IMT- In order to identify digital divides and ensure equal access developed and tested, promise much higher speeds, equal to ICTs, it is important to track Internet users by different to those delivered over fixed broadband. socio-economic variables, for example gender, age, level of education or employment status. While data on these variables are much more limited, in particular in the developing world, ITU estimates show that, for example, the gender gap in Internet usage is still prevalent (see Box 1.1). Advanced/4G technologies, which are currently being Developments in fixed-broadband networks need to focus on extending the fibre network from the core, and bringing it closer or direct to the end user. Upgrading cable networks to DOCSIS 3.0 will support connections at very high speeds, in line with those currently being provided by commercial While the above numbers confirm the overall growth of the fibre connections. information society worldwide, more information is required The role of broadband policies to assess other aspects, such as the speed and quality of the broadband connections and services. High-end users such as businesses and other organizations require reliable and fast connections without network interruptions. Available data show that there are huge differences among countries in terms of the speeds of connections for fixed broadband: National ICT/broadband policies can stimulate the market, expand services and bring down prices. Governments can therefore play an important role by providing an enabling environment for development of the ICT market and the deployment of broadband infrastructure. Governments the majority of developed countries’ subscriptions are at should put in place policies to stimulate competition speeds above 2 Mbit/s, while many developing countries and private investment, in particular in advanced ICT are limited to speeds below 2 Mbit/s (ITU, 2013a). Most of networks, since these are long-term investments that the subscriptions at speeds in excess of 10 Mbit/s are found foster economic growth. in developed countries. This partly reflects the prevailing retail prices in countries and the limitations of the network An increasing number of governments have not only infrastructure itself: few fibre-optic cables are deployed recognized the importance of broadband but also taken outside major urban areas in many developing countries. active steps to develop a national broadband plan or Other aspects receiving increased attention relate to strategy, or include broadband in their universal access/ the differences between the advertised and real speeds service definitions. Today, of the 146 governments that of broadband connections. During peak hours, speeds have adopted or are planning to adopt a national policy, can slow down considerably, which is a major complaint strategy or plan to promote broadband, 70 per cent consumers are making to their Internet service providers are from developing countries. Furthermore, around 35 (ISPs). per cent of countries have included broadband in their 6 universal access/service definitions – and these numbers Speed and quality also differ between mobile and fixed are expected to increase further.7 To recall the target set technologies. So far, mobile technologies – although by the Broadband Commission for Digital Development, 11 Chapter 1. Introduction Box 1.1: Monitoring the ICT gender gap In view of the multitude of benefits and opportunities ICTs bring, of internationally comparable statistical standards and definitions the desire to use computers, mobile phones and the Internet related to ICT occupations and employment. cuts across all sectors of society, and is found in the female and male population alike. But do girls and boys, women and men, have equal access to ICTs? ITU has been tracking indicators that capture the use of ICTs disaggregated by sex since 2007. Data show that there is a gender gap in the use of computers, mobile phones and Internet, and that the gap is more prevalent in developing than developed countries. For example, by end While discussions around the gender digital divide and its measurement are not new, recently the topic has received renewed attention in international forums, and there continues to be considerable demand for internationally comparable sexdisaggregated ICT data. The measurement of ICT and gender is critical to understanding developments in the information 2013, ITU estimates that the gender gap in Internet usage will be society and the digital divide, and to informing ICT policy-makers, 11 per cent globally, 2 per cent in developed countries and 16 analysts and other stakeholders addressing issues of gender per cent in developing countries (Chart Box 1.1).8 Indeed, there equality and ICT for development. is a close relationship between Internet access differences by At the international level, since its launch in 2004, the Partnership gender and other variables, such as level of income and level of on Measuring ICT for Development has been formulating core education (Dean-Swarray et al, 2013). Gender differences can also be observed when it comes to the location of Internet use, activities carried out over the Internet and frequency of Internet use. For example, available data suggest that women tend to use the Internet more than men for educational activities; that men access the Internet more than women in commercial Internet access facilities (such as cybercafés); and that men tend to be online more frequently than women. indicators in the area of infrastructure and access, household ICT access, individual use of ICT, use of ICT in education, ICT use in business, ICT use in government and the ICT sector. While many of these indicators can be broken down by gender, not all of them are collected internationally and/or nationally and, as a result, data availability is patchy at best – in particular in developing countries. In addition, certain areas that are not (yet) covered by the Partnership and its members are critical Another area where critical gender-relevant information is in high to gender and ICT policy-making, such as ICT careers, ICT- demand is the participation of women in the ICT workforce. There related employment and ICT skills. In order to prompt people seems to be a striking gap when it comes to gender equality in ICT-related professions and careers, across developed and developing countries (ITU, 2012b). Few comparable data are available to monitor such trends, primarily on account of a lack to give greater attention to measuring gender and ICT, the Partnership launched a new Task Group on Gender, co-led by ITU and UNCTAD, in early 2013. The objective of the task group is to improve the availability of internationally comparable indicators on gender and ICT, especially in developing countries. Chart Box 1.1: Men and women online, 2013* Members include representatives of international and regional organizations, NGOs and the private sector. 11% 1.6 In 2012, the Broadband Commission for Digial Development launched a new Working Group on Gender in order, inter alia, Billions of people 1.4 16% 1.2 to promote digital inclusion for women and empower women 1.0 0.8 0.6 through ICTs. At its first meeting in March 2013, the working group proposed a new target aiming to achieve gender 2% 0.4 equality in broadband access by 2020, which was endorsed by 0.2 the Broadband Commission. In recognizing the importance of setting and monitoring international ICT for development goals, 0.0 Women Men Developed Women Men Developing Women Men World the Broadband Commission is making an important contribution to raising awareness, among policy-makers and data producers alike, of the importance of addressing and measuring the gender Note: * Estimate. Source: ITU World Telecommunication/ICT Indicators database. 12 digital divide. Measuring the Information Society 2013 by 2015 all countries should have included broadband in connected to the Internet. People living outside major their national ICT policy or plan. cities in developing countries are those for whom ICTs can have the greatest development impact. Bringing people Many of these broadband policies and plans focus on online will also give them access to knowledge, education, building nationwide broadband infrastructure and healthcare and other essential services and business connecting households, but also on stimulating demand opportunities. Future progress will depend, moreover, on through the adoption of online services and applications how good the Internet access is and whether it supports such as e-business, e-education, e-health and e-government, running the applications required and desired. It will and on extending connectivity to provide universal access. also be necessary to provide relevant content, and in the Particularly in countries where international connectivity languages which those most in need understand. has been limited, another key focus has been on increasing international Internet bandwidth. While it is not clear yet how ICTs will be reflected in future international development goals, there is no doubt that In its latest Trends in Telecommunication Reform report they will continue to permeate all sectors of society and the (ITU, 2013b), ITU highlights various options for policy- economy and become increasingly indispensable. The divide makers and regulators to create incentives for the private sector to invest in ICTs, such as adopting enabling policies, simplifying licensing regimes, increasing the amount of available spectrum, reducing regulatory obligations and offering tax incentives. In addition, for a thriving broadband environment, regulatory frameworks need to achieve a balance between the promotion of competition in services and in infrastructure in order to address the challenges associated with access to broadband networks and services. between those who are part of the global information society and those who are not is liable to deepen, as the latter are left behind and face little progress. Continuous monitoring and measurement of information-society developments will be required in order to identify progress and gaps and to ensure equal access, use and impact of ICTs. It is essential to have the national and international statistical community on board early on in the process of formulating targets and indicators in the field of ICT4D. During the WSIS Forum The post-2015 debate and ICT measurement 2013, participants discussed the process of the post-2015 At the global level, the ICT-for-development (ICT4D) agenda. A session organized by the Partnership on Measuring debate has shifted its focus towards the post-2015 ICT for Development looked at the lessons learned from development agenda, which was one of the main topics measuring international ICT4D goals, specifically those at the WSIS Forum 2013.9 There is no doubt that ICTs related to the WSIS process, and recommended that “the continue to be a key enabler for social and economic future ICT4D policy debate should take into consideration development. Access to new technologies is important inputs from the statistical community”.10 ITU, jointly with its for ensuring full participation by all in new opportunities partners, is working actively to establish a bridge between related to employment, education, health, governance, these debates and promote an active role for the statistical peace-building, etc. Nevertheless, outside the ICT4D community in the process of developing future ICT-related community, the spread of ICT is often taken for granted development frameworks. and therefore sometimes left out of the core development development agenda and highlighted the need to link the ICT4D measurement debate to the broader development debate. 1.2 Overview of the report There is a real danger, however, that while the world is The main objective of this Measuring the Information Society transforming into an information society based on high- (MIS) report is to identify recent global and regional trends in speed, always-on connections, there is no equal access ICT deployment and uptake, on the basis of internationally to ICTs for all. The main target groups of the MDGs and comparable ICT statistics. A key feature of the MIS report post-2015 development goals will have to be sought series is the presentation of two tools for benchmarking precisely among those 4.4 billion people who are not yet the information society: the ICT Development Index (IDI) 13 Chapter 1. Introduction and the ICT Price Basket (IPB). The latest results for these regions and between developed and developing countries. two metrics will help policy-makers monitor trends, identify The chapter then goes on to compare fixed- and mobile- areas for policy action and compare their ICT developments broadband plans, highlighting differences in terms of with those in other markets. In addition, each year the report prices, data volumes and speed, and pointing to the looks at specific information-society aspects and discusses limitations in terms of comparability. The final section of the them on the basis of quantitative analyses. The objective is chapter proposes a future mobile-broadband sub-basket, to provide an unbiased overview of ICT trends for as many combining prices of the different mobile-broadband plans countries as possible, especially in the developing world. into one single benchmarking value per country, which could be added to the IPB in the future. The data used in the report are primarily statistics collected by ITU, complemented by data received from the United Without doubt, ICTs – where available and affordable – Nations Population Division (population statistics), the play a vital role in the life of young people. The concept UNESCO Institute for Statistics (UIS) (statistics on literacy of “digital natives” is broadly used to characterize (young) and school enrolment), the World Bank (data on GNI per people born during the digital age and growing up using capita and PPP dollars) and IMF (data on exchange rates). ICTs. However, no effort has been made so far to quantify the digital natives of today’s (and tomorrow’s) world, in Chapter 2 will report on the main results of the latest ICT particular in the developing nations. ITU data, coupled with Development Index (IDI), featuring country data for the the UN’s demographic statistics, provide a unique source years 2011 and 2012. The chapter begins by presenting a for calculating/estimating the digital native population global IDI analysis and highlighting key performers and most in all countries. Chapter 4 is about measuring the world’s dynamic countries, especially from developing regions. It digital native population. After first reviewing the concept also looks at the relationship between the IDI and GDP per of digital natives and defining the methodology used for capita, and analyses IDI results by level of development. the calculation, it presents and discusses the main results. This is followed by an analysis of the three IDI sub-indices: Results are shown globally, regionally and at the country the access sub-index, the use sub-index and the skills sub- level, and are also compared with other relevant variables, for index, highlighting key performers. Finally, a regional analysis example related to education. The chapter concludes with of the IDI will be presented, discussing the IDI results and a number of policy implications resulting from the findings. main findings separately for each of the six regions defined by the ITU Telecommunication Development Bureau (BDT). Chapter 5 takes a closer look at the evolution and current state of play of audiovisual services. It explains how TV Chapter 3 presents the main results of the latest ICT price- broadcasting services have evolved from traditional TV data collection exercise. This year’s edition of the report will services (linear, free-to-air, analogue TV) to the current diverse focus primarily on the consumer price of fixed-broadband audiovisual offer (multichannel, multidevice, linear/non- and mobile-broadband services. The overall ICT Price linear digital TV and user-generated content), highlighting Basket (IPB) and its main objective are briefly introduced the effects of convergence in transforming the audiovisual and presented. This is followed by an analysis of fixed- landscape. The Chapter then presents and analyses the broadband price data. Price trends over the past five years data for multichannel TV services, and the growth of digital are discussed, including for different regions and comparing TV. Data are also broken down by technology (CATV, DTH, developed and developing countries. Recent market trends satellite, IPTV, DTT, analogue terrestrial broadcasting) and by in terms of fixed-broadband plans offered in countries are region, and regional and country differences are examined. also presented and discussed, such as increases in speed The chapter also looks at the digital switchover and analyses and data allowances. Price data are then presented for data illustrating the increasing role of the Internet in the mobile-broadband services. Four different types of plan distribution of audiovisual content (for both IPTV and are discussed (prepaid/postpaid handset-based/computer- over-the-top audiovisual services). It concludes with a list based plans), and the prices and services analysed and of regulatory and policy considerations derived from the compared. The analysis also looks at differences across analysis presented. 14 Measuring the Information Society 2013 Endnotes See http://www.ericsson.com/news/1659597. 1 In order to take into account the importance of fixed-wireless and satellite Internet access in some countries, and following the recommendations of some Member States, ITU has replaced the indicator “mobile-broadband subscriptions” with the (broader) indicator “wireless-broadband subscriptions” in the ICT Development Index (IDI) (see Chapter 2). Apart from mobile-broadband subscriptions, wireless broadband also includes terrestrial fixed-wireless (including WiMAX) and satellite subscriptions. 2 According to Cisco, in 2012, 4G connections represented only 0.9 per cent of mobile connections. 3 In 2011, the Broadband Commission endorsed four targets to be achieved by 2015: (1) making broadband policy universal, (2) making broadband affordable, (3) connecting homes to broadband and (4) getting people online. See http://www.broadbandcommission.org. 4 A computer refers to a desktop, or a laptop computer, or a tablet or similar handheld computer. It does not include equipment with some embedded computing abilities, such as smart TV sets, and devices with telephony as a main function, such as mobile or smart phones. The definition of computer has been recently updated by the ITU Expert Group on ICT Household Indicators (EGH), as part of the revisions of the core ICT indicators on access to and use of ICT by households and individuals. See http://www.itu.int/en/ITU-D/Statistics/Documents/events/brazil2013/Final_report_EGH.pdf. 5 See, for example, the joint project by SamKnows and the US Federal Communications Commission (FCC, 2013). 6 ITU World Telecommunication Regulatory Database. 7 This measure presents the difference (in absolute values) between numbers of male and female Internet users relative to male Internet users. Thus, the reference value is the male Internet users group, and the gender gap is expressed comparing females to males. 8 See http://www.itu.int/wsis/implementation/2013/forum/. 9 See http://www.itu.int/wsis/implementation/2013/forum/agenda/session_docs/41/41-ORG-session-report.pdf. 10 15 Measuring the Information Society 2013 Chapter 2. The ICT Development Index (IDI) 2.1 Introduction to the IDI1 Conceptual framework The ICT Development Index (IDI) is a composite index The recognition that ICTs can be a development enabler, if applied and used appropriately, is critical to countries that are moving towards information or knowledgebased societies, and is central to the IDI’s conceptual framework. The ICT development process, and a country’s transformation to becoming an information society, can be depicted using the following three-stage model (Figure 2.1): combining 11 indicators into one benchmark measure that serves to monitor and compare developments in information and communication technology (ICT) across countries. The IDI was developed by ITU in 2008 and first presented in the 2009 edition of Measuring the Information Society (ITU, 2009a). It was established in response to ITU Member States’ request to develop an ICT index and publish it regularly. This section briefly describes the main • Stage 1: ICT readiness (reflecting the level of networked infrastructure and access to ICTs) • Stage 2: ICT intensity (reflecting the level of use of ICTs in the society) • Stage 3: ICT impact (reflecting the result/outcome of efficient and effective ICT use). objectives, conceptual framework and methodology of the IDI. The main objectives of the IDI are to measure: •the level and evolution over time of ICT developments in countries and relative to other countries; • progress in ICT development in both developed and developing countries: the index should be global and reflect changes taking place in countries at different levels of ICT development; •the digital divide, i.e. differences between countries Advancing through these stages depends on a combination of three factors: the availability of ICT infrastructure and access, a high level of ICT usage and the capability to use ICTs effectively. Accordingly, the first two stages listed above correspond to two major components of the IDI: ICT access and ICT use. growth and development, based on available Reaching the final stage, and maximizing the impact of ICTs, crucially depends on the third component of the IDI: ICT skills. ICT (and other) skills determine the effective use that is made of ICTs, and are critical to leveraging the full potential of ICTs for socio-economic development. Economic growth capabilities and skills. and development will remain below potential if economies with different levels of ICT development; •the development potential of ICTs or the extent to which countries can make use of ICTs to enhance 17 Chapter 2. The ICT Development Index (IDI) Figure 2.1: Three stages in the evolution towards an information society ICT Readiness (infrastructure, access) ICT Development Index ICT Use ICT Impact (intensity) (outcomes) ICT Capability (skills) Source: ITU. are not capable of exploiting new technologies and reaping their benefits. Therefore, the IDI includes a measurement of the capability to use ICTs effectively. A single indicator cannot track progress in all three components (access, usage and skills) of the ICT development process, and it is thus necessary to construct a composite index such as the IDI. The IDI aims to capture the evolution of the information society as it goes through its different stages of development, taking into consideration technology convergence and the emergence of new technologies. Based on this conceptual framework, the IDI is divided into the following three sub-indices: • • 18 • Skills sub-index: This sub-index captures ICT capability or skills as indispensable input indicators. In the absence of data on ICT skills, it includes three proxy indicators (adult literacy, gross secondary enrolment and gross tertiary enrolment), and is therefore given less weight in the computation of the IDI compared with the other two sub-indices.2 The choice of indicators included in the sub-indices reflects the corresponding stage of transformation to the information society. Therefore, the indicators in each sub-index may change over time to reflect technological developments related to ICTs, and as more and better data become available. For example, what was considered basic infrastructure in the past – such as fixed-telephone lines – is fast becoming less relevant Access sub-index: This sub-index captures IC T readiness, and includes five infrastructure and access indicators (fixed-telephone subscriptions, mobilecellular telephone subscriptions, international Internet bandwidth per Internet user, percentage of households with a computer, and percentage of households with Internet access). in the light of increasing fixed-mobile substitution. Similarly, Use sub-index: This sub-index captures ICT intensity, and includes three ICT intensity and usage indicators (individuals using the Internet, fixed (wired)-broadband subscriptions, and wireless-broadband subscriptions). Methodology broadband is currently considered an advanced technology, characterizing intense Internet use, and is therefore included in stage 2 (as an indicator in the use sub-index). However, in the future it may come to be seen as essential and be moved to stage 1 (as an indicator in the access sub-index), while another, new technology may appear in stage 2. The IDI includes 11 indicators. A detailed definition of each indicator is provided in Annex 1. Measuring the Information Society 2013 Box 2.1: ITU expert groups Much of ITU’s work in the area of indicator definitions and Telecommunication/ICT Indicators Symposium (WTIS), ITU’s methodologies is carried out through its two expert groups: main forum on ICT statistics. the Expert Group on Telecommunication/ICT Indicators (EGTI) In 2011, EGTI opened a discussion item on the IDI on its online and the Expert Group on ICT Household Indicators (EGH). forum, and its experts are encouraged to provide suggestions Created in 2009 and 2012, respectively, these two expert on how to improve the IDI methodology. 3 EGH includes groups revise and review ITU’s supply-side and demand- discussion on the three demand-side indicators included in side statistics, and discuss methodological issues and new the IDI (households with a computer, households with Internet indicators. Both groups, which are open to all ITU members access, and individuals using the Internet). and to experts in the field of ICT statistics and data collection, Interested experts are invited to join the EGTI4 and/or the work through online discussion forums and occasional face- EGH5 discussion forum to share experiences, contribute to the to-face meetings. They periodically report back to the World discussions and participate in the decision-making process. The indicators used to calculate the IDI were selected on the IDI and its sub-indices are under regular discussion in the basis of the following criteria: ITU, in consultation with experts. Indicator definitions and • the IDI methodology are discussed in the ITU Expert Group The relevance of a particular indicator for contributing on Telecommunication/ICT Indicators (EGTI) and the ITU to the main objectives and conceptual framework of Expert Group on ICT Household Indicators (EGH) (Box 2.1). the IDI. For example, the selected indicators need • to be relevant to both developed and developing The indicator that has undergone the greatest change countries, and should reflect – as much as possible – in recent years is the one serving to measure the uptake the framework’s three components described above.6 of wireless broadband. In 2010, ITU revised the definition Data availability and quality. Data are required for a of mobile-broadband subscriptions so as to reflect more large number of countries, as the IDI is a global index. There is relative paucity of ICT-related data, especially • accurately actual data connections to mobile-broadband networks rather than potential connections. In addition, at the household level, in the majority of developing the breakdown of broadband subscriptions was revised and countries. In particular, the three indicators included changed from the previous “fixed vs mobile” to the current in the skills sub-index should be considered as “wired vs wireless” classification. As a result, the new wireless- proxies until data directly relating to ICT skills become broadband indicators include satellite subscriptions, available for more countries. terrestrial fixed (wireless)-broadband subscriptions and The results of various statistical analyses. The statistical associations between various indicators were examined, and principal components analysis (PCA) was used to examine the underlying nature of the data and to explore whether the different dimensions are statistically well-balanced. active mobile-broadband subscriptions.7 In the 2011 edition of the IDI, the indicator “active mobile-broadband subscriptions” replaced the previous indicator “mobilecellular subscriptions with access to data communications at broadband speeds”, which measured the potential of mobile-cellular subscriptions to access, for example, 3G networks. In this year’s IDI, as countries improve their While the basic methodology has remained the same since data collection in the area of wireless broadband, all the IDI was first published, minor adjustments are being (combined) wireless-broadband technologies are taken into made each year. consideration (Box 2.2). Given the dynamic nature of the ICT sector and related To improve the IDI, another major consideration for ITU has data availability, the types of indicators to be included in been to replace some of the subscription-based (supply- 19 Chapter 2. The ICT Development Index (IDI) Box 2.2: From active-mobile broadband to wireless broadband By 2013, the large majority of countries had launched 3G subscriptions” has been replaced with “wireless-broadband high-speed mobile-broadband networks, and more and more subscriptions”. countries are starting to test and even commercialize LTEadvanced networks. By 2011, ITU had identified a definition to clearly separate fixed (wired)-broadband subscriptions from wireless-broadband subscriptions and to move from potential subscriptions to active subscriptions. This definition of wireless broadband, in line with that used by OECD, includes satellite subscriptions, terrestrial fixed (wireless)-broadband subscriptions and active mobile-broadband subscriptions. The latter includes both subscriptions that have been used to connect to the Internet using a mobile-cellular telephone and dedicated subscriptions using a USB modem/dongle (Figure Box 2.2). While the number of satellite subscriptions is relatively small (or even negligible) in most countries, a number of countries are deploying fixed (wireless)-broadband technologies, such as WiMAX. This is particularly true in some Arab States and some countries in the Americas and Europe. In Bahrain, for example, terrestrial fixed (wireless)-broadband subscriptions in 2011 accounted for close to 50 per cent of all wirelessbroadband subscriptions. Poland and Brazil had well over 1 million fixed-wireless subscriptions in 2012, although the figures were much higher for active mobile-broadband subscriptions. In the Islamic Republic of Iran, where 3G When ITU started collecting data for these indicators in 2010, mobile-broadband services were not available in 2012, fixed data reporting was relatively limited. Therefore, the IDI did not (wireless)-broadband subscriptions were the only wireless- at first include satellite broadband, nor terrestrial fixed (wireless)- broadband technology available to citizens. For most broadband subscriptions. More recently, though, most countries countries, however, especially those that have launched 3G have aligned their definition and data reporting on the ITU mobile-broadband networks, the inclusion of satellite and definition and are henceforth providing data broken down by the terrestrial fixed (wireless)-broadband subscriptions in the IDI different wireless-broadband technologies. Consequently, in the will not have a major impact on the data, or on their position 2013 edition of the IDI, the indicator “active mobile-broadband in the IDI ranking. Figure Box 2.2: Wireless-broadband subscriptions Active mobile-broadband subscriptions Standard mobilebroadband subscriptions (via a mobilecellular telephone) Dedicated mobilebroadband subscriptions (via USB dongle/modem or as an add-on data package to voice package) Terrestrial fixed (wireless)broadband subscriptions Satellitebroadband subscriptions Source: ITU (2011b). side) data with more data based on national household 2013, no fewer than 93 economies of the 157 included surveys (demand-side indicators). This seems particularly in the IDI had passed the 100 per cent mobile-cellular important in the area of mobile-cellular services. By end penetration mark. The high number of mobile-cellular 2013, ITU estimates that the number of mobile-cellular subscriptions is due mainly to multiple SIM cards that subscriptions will have reached 6.8 billion, close to the one person may own. The indicator on the number of figure for the world’s population (7 billion). Also, by early individuals using a mobile-cellular telephone (which ITU 20 Measuring the Information Society 2013 • collects through its household survey questionnaire) Normalization of data. This is necessary in order to would therefore provide a more accurate picture of the transform the values of the IDI indicators into the actual uptake, use and distribution of mobile-cellular same unit of measurement. The chosen normalization services. While the number of countries that collect method was the distance to a reference measure (or this information is increasing steadily, only 58 countries goalpost). The reference values were either 100 or reported these data to ITU by end 2012. It is therefore too obtained through a statistical procedure. early to substitute the current mobile-cellular subscription • data in the IDI with mobile-phone user data. Rescaling of data. The data were rescaled on a scale from 0 to 10 in order to compare the values of the indicators and the sub-indices. The IDI was computed using the same methodology as in • the past, applying the following steps (details are provided Weighting of indicators and sub-indices. The indicator weights were chosen based on the principal in Figure 2.2 and Annex 1): components analysis (PCA) results. The access and • Preparation of the complete data set. This step includes use sub-indices were given equal weight (40 per cent filling in missing values using various statistical each). The skills sub-index was given less weight (20 techniques. per cent), since it is based on proxy indicators. Figure 2.2: ICT Development Index: indicators, reference values and weights Reference value (%) 1. Fixed-telephone subscriptions per 100 inhabitants 60 20 2. Mobile-cellular telephone subscriptions per 100 inhabitants 190 20 3. International Internet bandwidth (bit/s) per Internet user 621’834* 20 4. Percentage of households with a computer 100 20 5. Percentage of households with Internet access 100 20 Reference value (%) 6. Percentage of individuals using the Internet 100 33 7. Fixed (wired)-broadband subscriptions per 100 inhab.itants 60 33 8. Wireless-broadband subscriptions per 100 inhabitants 100 33 Reference value (%) 9. Adult literacy rate 100 33 10. Secondary gross enrolment ratio 100 33 11. Tertiary gross enrolment ratio 100 33 ICT access ICT use ICT skills 40 40 ICT Development Index 20 Note: * This corresponds to a log value of 5.79, which was used in the normalization step. Source: ITU. 21 Chapter 2. The ICT Development Index (IDI) This chapter presents the IDI results for 2012 in comparison possible (theoretical) range of 0 to 10. At the same time, with 2011. It should be noted that the 2011 IDI values have nearly all countries increased their IDI values between 2011 changed from those published in the previous edition of and 2012, demonstrating that ICT levels continue to mature this report as a result of: throughout the world. In 2012, the average IDI value climbed • to 4.35, up about 5 per cent from 4.15 in 2011 (Table 2.1). Country data revisions. As more accurate data become available, countries provide ITU with revised statistics for previous years, which have been taken into consideration. This also allows ITU to identify inconsistencies and revise previous estimates. Differences are significant in all three sub-indices of the IDI, but are greatest in the use sub-index, which captures ICT uptake and intensity of usage. Its relatively high coefficient of variation, which measures the variation in countries’ IDI • Change from “active mobile-broadband subscriptions” to “wireless-broadband subscriptions” (see Box 2.2). values, indicates the greatest disparity, higher than in terms • Differences among countries included in the IDI. The calculation of the IDI ranking depends on the values of the other countries included. In each new edition, some countries are excluded and others added based on data availability. Overall, this version of the IDI includes 157 countries/economies as compared with 155 in last year’s edition. into information societies (at different speeds), they move of skills and access. This is consistent with the conceptual framework of the IDI, which holds that as countries evolve from the stage of ICT access to ICT use. While most countries are constantly increasing access to ICTs, a number of countries continue to display very low levels of ICT use. A comparison between 2011 and 2012 shows that, over this time period, both the maximum and minimum IDI values The remainder of the chapter is structured as follows. Section had increased, meaning that ICT levels are maturing not only 2.2 presents the IDI results at the global level. It highlights in countries at the top but also in those at the very bottom. some of the top performers, as well as the most dynamic The range between the lowest and the highest IDI values countries as reflected by their changes in IDI value and has not changed (7.58 in both 2011 and 2012), suggesting rank. It also looks at the relationship between a country’s that, overall, the ICT development gap between countries IDI score and its income level, presents IDI results by level at the very top and at the very bottom has not altered over of development (developed/developing countries) and by the year. Changes in the standard deviation (StDev) and the groups of countries with different IDI levels. coefficient of variation (CV), which measure the variation or dispersion of all IDI values from the average IDI values, were Section 2.3 analyses the three sub-indices (access, use also relatively minor, suggesting that, overall, countries are and skills), providing additional insights into areas of high/ moving at similar speeds. A minor decrease in the coefficient low ICT growth, in order to identify areas requiring further of variation between 2011 and 2012 suggests that values attention from policy-makers and private stakeholders. are tending to get closer to the average IDI value. Finally, section 2.4 presents a regional analysis of the IDI. Top IDI countries It shows IDI results for six regions (Africa, Americas, Arab States, Asia and the Pacific, Commonwealth of Independent The IDI 2012 includes a total of 157 countries (Table 2.2). The States (CIS) and Europe), as well as a comparative analysis top ten IDI countries are predominantly from Europe and of the six regions. from Asia and the Pacific. While the Republic of Korea, with the highest IDI value of 8.57, continues to lead the world in 2.2 Global IDI analysis terms of ICT developments, the Nordic countries Sweden, The results of the 2012 ICT Development Index (IDI) show Netherlands, the United Kingdom, Luxembourg and Hong that there are major differences in ICT levels between Kong (China) also rank in the top ten. A comparison with countries. In 2012, IDI values ranged from a low of 0.99 the 2011 ranking shows that there is hardly any change in (Niger) to a high of 8.57 (Republic of Korea) – within the terms of the countries with the highest ICT levels. The United 22 Iceland, Denmark, Finland and Norway follow closely. The Measuring the Information Society 2013 Table 2.1: IDI values and changes, 2011 and 2012 IDI 2012 IDI 2011 Average value* Min. Max. Range StDev CV Average value* Min. Max. Range StDev CV Change in average value 2011-2012 IDI 4.35 0.99 8.57 7.58 2.19 50.28 4.15 0.93 8.51 7.58 2.13 51.32 0.20 Access sub-index 4.74 1.12 9.18 8.06 2.25 47.56 4.56 1.12 9.13 8.01 2.25 49.23 0.18 Use sub-index 2.85 0.03 8.25 8.22 2.37 83.26 2.53 0.02 8.17 8.15 2.25 88.75 0.32 Skills sub-index 6.59 1.51 9.86 8.35 2.12 32.25 6.58 1.49 9.86 8.37 2.13 32.37 0.01 Note: * Simple average. StDev: Standard deviation, CV: Coefficient of variation. Source: ITU. Kingdom joined the top ten group (up from 11th position broadband penetration exceeds 30 per cent in every one in 2011), replacing Japan. of the top ten economies. Almost two-thirds of the top 30 IDI countries are from The very large majority of households in the top ten IDI Europe, where a shared regulatory framework and a clear set economies have a computer and Internet access. Another of priority areas and goals and targets have helped countries shared characteristic of these economies is their high evolve into advanced information economies (Box 2.3). Also level of Internet penetration: with the exception of Hong among the top 30 are a number of high-income economies Kong (China), where Internet penetration in 2012 stood from Asia and the Pacific (Australia, Macao (China), Singapore at 73 per cent, more than four out of five people in the and New Zealand) and the United States, Canada and top ten economies are online. In Iceland, Norway and Barbados from the Americas region. Sweden, between 94 and 96 per cent of the population are using the Internet. In the Republic of Korea, over 97 per All top ten IDI countries have reached very high levels of ICT cent of households have access to the Internet, and the access and use, and share a number of characteristics. These figure is over 90 per cent in the Netherlands (94 per cent), include highly competitive ICT markets and ICT services Luxembourg and Norway (93 per cent) and Denmark and that were privatized and liberalized early on. The top ten Sweden (92 per cent). economies achieve top scores on all IDI indicators, including in the area of wireless: the number of mobile-cellular Since countries at the top of the IDI are attaining high levels subscriptions has surpassed the number of inhabitants in of ICT access and use, their performance is often measured all top ten economies, and mobile-broadband penetration in terms of objectives that go beyond those measured by the levels are high, and growing steadily. High-speed mobile- IDI indicators. Indeed, economies with the highest level of broadband networks were launched relatively early on, and ICT use and uptake are increasingly focusing on exploiting by 2012 wireless-broadband penetration stood at over 50 the latest technologies, optimizing regulatory frameworks per cent in all top ten economies. The Republic of Korea, and pushing for increasingly fast and better ICT services. together with Finland and Sweden, are leaders in terms of High-speed Internet access at home has become one of mobile-broadband uptake, and all three have passed the the common measures of success. 100 per cent penetration rate for active mobile-broadband subscriptions.8 For example, in the Republic of Korea, where ICT continues to be a key priority area, by 2012 nearly all households At the same time, all top performers benefit from abundant had high-speed Internet access and the country enjoyed international Internet bandwidth, a highly developed one of the highest average advertised broadband speeds backbone, and solid fixed-broadband infrastructure. Fixed- in the world. ICTs have helped the Republic of Korea to 23 Chapter 2. The ICT Development Index (IDI) Table 2.2: ICT Development Index (IDI), 2011 and 2012 Economy Korea (Rep.) Sweden Iceland Denmark Finland Norway Netherlands United Kingdom Luxembourg Hong Kong, China Australia Japan Switzerland Macao, China Singapore New Zealand United States France Germany Canada Austria Estonia Ireland Malta Belgium Israel Spain Slovenia Barbados Italy Qatar Greece United Arab Emirates Czech Republic Latvia Portugal Poland Croatia Bahrain Russian Federation Belarus Hungary Slovakia Lithuania Cyprus Bulgaria Uruguay Kazakhstan Antigua & Barbuda Saudi Arabia Chile Lebanon Argentina Oman Romania Serbia TFYR Macedonia Brunei Darussalam Malaysia Costa Rica Azerbaijan Brazil St. Vincent and the Gr. Seychelles Moldova Trinidad & Tobago Bosnia and Herzegovina Ukraine Turkey Panama Georgia Mauritius Maldives Armenia Saint Lucia Jordan Colombia China Venezuela Rank 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 IDI 2012 8.57 8.45 8.36 8.35 8.24 8.13 8.00 7.98 7.93 7.92 7.90 7.82 7.78 7.65 7.65 7.64 7.53 7.53 7.46 7.38 7.36 7.28 7.25 7.25 7.16 7.11 6.89 6.76 6.65 6.57 6.54 6.45 6.41 6.40 6.36 6.32 6.31 6.31 6.30 6.19 6.11 6.10 6.05 5.88 5.86 5.83 5.76 5.74 5.74 5.69 5.46 5.37 5.36 5.36 5.35 5.34 5.19 5.06 5.04 5.03 5.01 5.00 4.81 4.75 4.74 4.73 4.71 4.64 4.64 4.61 4.59 4.55 4.53 4.45 4.43 4.22 4.20 4.18 4.17 Rank 2011 1 2 4 3 5 6 7 11 9 10 15 8 12 13 14 18 16 19 17 20 21 25 22 24 23 26 27 28 36 29 30 33 45 31 37 35 32 34 42 38 46 39 40 41 43 47 50 49 44 48 52 61 53 58 54 51 55 56 57 65 60 62 59 70 67 63 64 69 66 68 73 74 71 75 72 77 78 79 76 IDI 2011 8.51 8.41 8.12 8.18 7.99 7.97 7.85 7.63 7.76 7.66 7.54 7.77 7.62 7.57 7.55 7.31 7.35 7.26 7.33 7.14 7.10 6.74 7.10 6.85 6.85 6.70 6.65 6.60 6.01 6.43 6.41 6.21 5.68 6.30 6.00 6.07 6.22 6.14 5.79 5.94 5.57 5.91 5.85 5.79 5.71 5.50 5.38 5.41 5.70 5.46 5.08 4.62 5.06 4.80 5.05 5.38 4.93 4.93 4.81 4.47 4.62 4.59 4.71 4.36 4.46 4.54 4.49 4.38 4.47 4.38 4.24 4.23 4.31 4.18 4.28 3.90 3.89 3.86 4.00 Economy Albania Ecuador Fiji Mexico South Africa Mongolia Egypt Suriname Viet Nam Morocco Iran (I.R.) Tunisia Peru Jamaica Dominican Rep. Thailand Cape Verde Indonesia Philippines Bolivia El Salvador Tonga Syria Paraguay Uzbekistan Guyana Algeria Sri Lanka Botswana Namibia Honduras Cuba Gabon Ghana Nicaragua Zimbabwe Kenya Swaziland Bhutan Sudan Cambodia India Nigeria Lao P.D.R. Senegal Solomon Islands Lesotho Yemen Gambia Pakistan Uganda Djibouti Zambia Mauritania Myanmar Bangladesh Cameroon Côte d'Ivoire Comoros Angola Congo Rwanda Tanzania Benin Mali Malawi Liberia Congo (Dem. Rep.) Mozambique Madagascar Guinea-Bissau Ethiopia Guinea Eritrea Burkina Faso Chad Central African Rep. Niger Rank 2012 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Note: *The GNI per capita is based on the World Bank’s Atlas Method. Source: ITU. Source: ITU. 24 IDI 2012 4.11 4.08 3.99 3.95 3.95 3.92 3.85 3.84 3.80 3.79 3.79 3.70 3.68 3.68 3.58 3.54 3.53 3.43 3.34 3.28 3.25 3.23 3.22 3.21 3.12 3.08 3.07 3.06 3.00 2.85 2.74 2.72 2.61 2.60 2.54 2.52 2.46 2.44 2.40 2.33 2.30 2.21 2.18 2.10 2.02 1.97 1.95 1.89 1.88 1.83 1.81 1.77 1.77 1.76 1.74 1.73 1.72 1.70 1.70 1.68 1.66 1.66 1.65 1.60 1.54 1.43 1.39 1.31 1.31 1.28 1.26 1.24 1.23 1.20 1.18 1.01 1.00 0.99 Rank 2011 80 83 81 82 85 90 87 84 86 89 88 92 91 93 95 94 96 97 98 102 103 101 99 100 104 106 105 107 108 111 109 110 112 114 113 119 116 115 117 118 121 120 123 122 125 124 126 129 127 128 130 131 137 133 132 139 136 135 134 138 140 143 141 142 144 145 148 146 149 147 152 150 151 153 154 156 155 157 IDI 2011 3.80 3.73 3.79 3.78 3.67 3.59 3.65 3.73 3.65 3.59 3.61 3.58 3.58 3.54 3.36 3.42 3.18 3.14 3.14 3.08 3.06 3.09 3.13 3.10 3.02 2.96 2.98 2.92 2.83 2.60 2.70 2.66 2.46 2.30 2.39 2.16 2.23 2.27 2.19 2.19 2.05 2.13 1.96 1.99 1.88 1.91 1.84 1.76 1.79 1.78 1.72 1.71 1.64 1.70 1.70 1.62 1.66 1.66 1.68 1.63 1.58 1.54 1.57 1.57 1.43 1.41 1.27 1.30 1.26 1.28 1.19 1.22 1.20 1.15 1.11 0.94 1.00 0.93 Measuring the Information Society 2013 become a robust economy, and overcome the 2008 financial wholesale voice and data market services to competitors crisis. They have driven growth and innovation, increased at fixed (non-discriminatory) prices.14 transparency and made the country one of the key ICT exporters in the world.9 Regulators are also increasingly monitoring the speed and quality of fixed- and mobile-broadband subscriptions, By 2012, the large majority of households in Europe’s Nordic and looking into regulatory measures to ensure that countries also had high-speed Internet access. Sweden (87 their country’s backbone infrastructure is able to cope per cent) registered the highest penetration of broadband with increasing demand for bandwidth. In the United connections, followed by Denmark and Finland (both 85 per Kingdom, Ofcom recently published a report “to encourage cent). In the Netherlands and the United Kingdom, 83 per competition in the business connectivity market, and cent and 80 per cent, respectively, of all households had a identify how best to sustain critical fibre networks between broadband connection to the Internet in 2012.10 Sweden’s Broadband Survey, conducted by the Swedish Post and businesses – which also support a growing number of consumer services”.15 In Hong Kong (China), the Office Telecom Authority (PTS), showed that by early 2012 almost of the Communications Authority offers users an online half of all households and businesses in Sweden could get broadband performance test system to test both actual broadband with a theoretical rate of at least 100 Mbit/s. fixed-broadband and mobile-broadband speeds.16 Much of the increase was due to fibre being rolled out in Dynamic IDI countries the access network.11 Most of the top performers in the IDI were also early adopters of Long Term Evolution (LTE) wireless technology, and they include the first countries to offer these mobilebroadband services commercially. In Europe, Sweden and Norway were the first countries to offer LTE, as early as end 2009.12 By early 2012, about half of the population of Sweden lived in a place that had coverage by one of the 4G networks. In the Republic of Korea, where LTE services were launched in 2011, nationwide coverage was achieved by April 2012. In June 2012, the largest operators in the Republic of Korea and in Hong Kong (China) announced Between 2011 and 2012, there was hardly any change in the top ten IDI economies and only one country – the United Kingdom – joined the group from its previous 11th position. The group of the top 30 economies saw similarly few changes, suggesting that the countries that have reached high ICT levels – usually through a high and long-standing degree of liberalization and privatization and focused ICT policies – remain at the top. The ranking further highlights the link between income and education levels and ICT development: all of the top 30 economies in the IDI are high-income economies that share a high level of skills. that they were offering users the benefits of the first LTE Although most countries in the ICT Development Index do international roaming agreement.13 not see dramatic changes in their IDI value or rank within a Another feature shared by top performers in the IDI is an independent and active regulatory authority that analyses and supervises the telecommunication markets in order to provide impartial and transparent information, protect consumer interests and guarantee an open and competitive market environment. Only recently, both the Swedish Post and Telecom Authority (PTS) and the year, there are some significant and noteworthy movements. A number of so-called “dynamic” countries report aboveaverage positive changes in their IDI rank and/or IDI value over the 12-month period. This group of dynamic countries predominantly includes developing countries found in the upper and medium group of the IDI (see section 2.3 and Table 2.5 for a division of countries into groups) (Table 2.3). The most dynamic countries come from all regions, except Icelandic Post and Telecom Administration (PTA) laid Europe, where IDI values are generally already very high and down new rules for dominant operators identified as growth is more moderate. having significant market power, in order to ensure longterm competition. Recent decisions – also referred to as The reasons underlying the improvement in IDI values and ex ante regulation, as the market is regulated in advance rankings in the most dynamic countries are multiple and – imposed obligations on certain companies to offer varied, but can often be linked to a higher level of competition 25 Chapter 2. The ICT Development Index (IDI) Box 2.3: Europe counts on ICTs: The Digital Agenda for Europe The European Union has high hopes for information and guarantee consumer rights. The rules, which apply to fixed communication technologies. Among other things, it is and wireless telecommunication markets, the Internet and counting on ICTs to fuel competitiveness, drive innovation and broadcasting services, were designed to be simple, to foster create new job opportunities. To fully benefit from its potential, deregulation and to be technology-neutral and sufficiently citizens and businesses alike must have access to a flawless, flexible to deal with fast-changing market environments.17 In high-speed and universally available network infrastructure. 2010, the existing regulatory framework was complemented A shared regulatory framework and EU-wide rules created in with the Digital Agenda for Europe (DAE), the first of seven 2002 and updated in 2009 were put in place to encourage flagship initiatives under Europe 2020 – the EU’s strategy to competition, improve functioning of the internal market and deliver smart, sustainable and inclusive growth. The DAE, which Figure Box 2.3: The EU’s Digital Agenda Scoreboard Note: * R&D: Research and Development. Source: European Commission, Digital Agenda Scoreboard 2012. Note: R&D: Research & Development. Source: European Commission, Digital Agenda Scoreboard 2012. 26 Measuring the Information Society 2013 Box 2.3: Europe counts on ICTs: The Digital Agenda for Europe (continued) was updated in 2013, includes over 100 actions grouped into than 54 per cent of EU citizens have broadband available at seven pillars that include a single digital market, trust and speeds greater than 30 Mbit/s. At the same time, the report security, and fast and ultra-fast Internet access. It also includes also pinpointed shortcomings, including fragmented national a set of specific targets that should be achieved by 2020 and markets and the need to move even further and create a that are tracked via the EU scoreboard (Figure Box 2.3). Single Telecoms Market to foster growth and further streamline 18 regulation.20 Although details have not been discussed, a single Progress on the actions and towards the specific targets telecommunication market could, for example, mean the EU- is monitored closely and can be viewed by country, or for wide licensing of certain telecommunication services, facilitate the EU as a whole.19 In the last review, major achievements cross-border merger of telecommunication operators, and affect were highlighted – including the fact that, by 2013, no fewer roaming charges. Source: ITU, based on https://ec.europa.eu/digital-agenda/en/digital-agenda-europe. and positive role of the private sector. In a number of cases, government-driven programmes or initiatives have also helped to increase ICT access and use. Finally, strong growth in the number of wireless- and fixed-broadband subscriptions is enabling more and more countries to increase household ICT access and use, and to bring more people online. The following section looks at the most dynamic countries in more detail. Figure 2.3 contains spider charts of the most dynamic countries, which illustrate normalized values and changes between 2011 and 2012, for each one of the 11 indicators included in the IDI. Australia increased its IDI from 7.54 in 2011 to 7.90 in 2012, moving up four places on the IDI in the process, to 11th position. While Australia already boasts a very high level of ICT development, consistent growth rates were recorded on the indicators included in the access sub-index. The highest jump, however, occurred in the use sub-index, with an increase of 0.80 value points (as compared with the global average increase of 0.32) to 7.46 in 2012. Australia has seen a significant rise in the number of wireless-broadband subscriptions, and wireless-broadband penetration Table 2.3: Most dynamic countries – changes between IDI 2011 and 2012 Change in IDI ranking IDI rank 2012 Country Change in IDI value (absolute) IDI rank change IDI rank 2012 Country IDI value change 33 United Arab Emirates 12 52 Lebanon 0.75 52 Lebanon 9 33 United Arab Emirates 0.73 29 Barbados 7 29 Barbados 0.65 64 Seychelles 6 54 Oman 0.56 41 Belarus 5 60 Costa Rica 0.56 60 Costa Rica 5 41 Belarus 0.55 85 Mongolia 5 22 Estonia 0.54 132 Zambia 5 39 Bahrain 0.51 11/135 Australia/Bangladesh 4* 26 Israel 0.41 54/115 Oman/Zimbabwe 4* 62 Brazil 0.41 Note: * Australia, Bangladesh, Oman and Zimbabwe all went up four places in the IDI rankings between 2011 and 2012. Source: ITU. 27 Chapter 2. The ICT Development Index (IDI) increased from 81 per cent in 2011 to 103 per cent in 2012, by the public awareness campaign “I Love My Number”.21 The which is among the highest rates in the world. A report introduction of MNP further heightened the competitiveness by the Australian Communications and Media Authority of the relatively small mobile-cellular market in which three (ACMA) links the surge in wireless-broadband usage to operators compete. Within the IDI use sub-index, both the increased uptake of smartphones and tablets (Box 2.4). Bahrain entered the top 40 of the IDI 2012, with an IDI value increase of 0.51. The country improved in both the access and the number of Internet users and the number of wirelessbroadband subscriptions grew significantly. The percentage of individuals using the Internet increased to 88 per cent in use sub-indices. Within the access sub-index, mobile-cellular 2012, up from 77 per cent the year before. At the same time, telephone penetration climbed from 128 per cent in 2011 broadband has spread successfully around Bahrain and, at to 156 per cent in 2012. This comes after mobile number 13 per cent, Bahrain’s fixed (wired)-broadband penetration portability (MNP) was introduced in July 2011, accompanied is the highest in the Arab States region. Since 2010, all of Box 2.4: Smarter phones and faster networks are driving data usage and revenues in Australia Between 2011 and 2012, Australia’s wireless-broadband growth. Increasing weight is being given to the smartphone penetration grew by 27 per cent, from 81 subscriptions per 100 and tablet market, as more and more customers switch from inhabitants in 2011, to 103 in 2012. This constitutes not only one basic and feature phones to smartphones and tablets. ACMA of the highest growth rates, but also one of the highest 2012 estimates that, in May 2012, 8.67 million Australians were using penetration levels worldwide (see Chart Box 2.4). a smartphone, 4.37 million were using a tablet and 3.65 million According to a report by the Australian Communications and customers were using both a mobile phone and a tablet to Media Authority (ACMA), improvements in mobile-broadband access the Internet. The rise in smartphone usage is in turn infrastructure as well as the rapid uptake of smartphones and driving data usage, and the report shows that, in comparison tablets have revived the Australian mobile market, in which with non-smartphone users, smartphone users are: mobile-cellular penetration had reached 100 per cent in 2007 and growth was stagnating. The report highlights the importance of the mobile-broadband market as an opportunity for new revenue streams and market • nine times more likely to go online via their handsets; • four times more likely to purchase goods online; • three times more likely to stream or download audio or video content; Per 100 inhabitants Chart Box 2.4: Wireless-broadband subscriptions, top ten economies, 2011 and 2012 200 180 160 140 120 100 80 60 40 20 0 • three times more likely to pay bills online; • twice as likely to access social networking sites. 2011 2012 Young people, in particular, were accessing the Internet via their mobile phones: 76 per cent of 18 to 24 year olds and 78 per cent of 25 to 34 year olds, as compared with 51 per cent of the population as a whole. To facilitate Internet access via smartphones or tablets, an estimated 4.5 million Australians downloaded a mobile application during the month of June 2012. Operators, on the other hand, are doing their part and are busy upgrading networks, including by supporting the roll-out of 4G. Source: ITU World Telecommunication/ICT Indicators database. 28 Source: ITU, based on ACMA, 2013. Measuring the Information Society 2013 the Kingdom’s Internet subscriptions are broadband. In Barbados increased its IDI by 0.65 value points, rising 2011, more than half of all broadband subscriptions were seven places to 29th position in the IDI 2012. Most progress 22 to plans with advertised speeds of more than 2 Mbit/s. has been made in the use sub-index. The country’s Wireless-broadband penetration almost doubled, reaching two mobile operators, Digicel and Lime, launched their 33.5 per cent in 2012. The country also has a nationwide mobile-broadband networks in November 2011.26 Mobile- WiMAX network, which the operator Bahrain Zain launched broadband had been long awaited in Barbados, one of the to complement its mobile 3G cellular voice and data network, last countries in the Americas region to offer the service. and upgraded in 2011 in order to provide higher speeds and Subsequently, wireless-broadband penetration went up increase reliability. Bahraini Internet subscribers are thus from less than 1 per cent in 2011 to 37 per cent in 2012. benefiting from the improved quality and speed offered by Lime and Digicel offer a variety of data plans allowing users 23 broadband connections. to choose according to their needs and budget. Customers Bangladesh climbed four places to 135th in the IDI 2012, handset- and computer-based usage, as well as different with the access sub-index showing the highest increases. validity periods and data allowances.27 The IDI access sub- In particular, mobile-cellular telephone penetration rose index highlights improvements as well. By end 2012, the from 56 per cent in 2011 to 64 per cent in 2012. Bangladesh proportion of households with a computer and with Internet has a highly competitive mobile market, with six mobile- access both increased by around 6 per cent to 69 per cent cellular operators. Fierce competition led to the lowering of mobile-cellular prices and a concomitant rise in subscription numbers. The ICT Price Basket shows that Bangladesh has relatively affordable mobile-cellular prices and that prices have dropped consistently over the past years. In terms of PPP$, the country had one of the least expensive offers in 2012 (see Annex 4). Operators in Bangladesh are competing for a large group of low-income customers and were thus obliged to reduce access costs. This includes the introduction of prepaid offers, per-second billing and the reduction of handset prices (Yusuf et al, 2010). Furthermore, important progress has been made with regard to international Internet bandwidth. In 2012, the Bangladesh Telecommunications Regulatory Commission (BTRC) issued six licenses for the operation of an international terrestrial cable (ITC).24 Until then, the country’s only connection to the world wide web was the SEA-ME-WE4 submarine cable, controlled by the government-owned BTCL.25 The newly can choose between prepaid and postpaid offers for both and 58 per cent, respectively. Furthermore, international Internet bandwidth per Internet user almost doubled, from around 38 000 bit/s in 2011 to close to 70 000 bit/s in 2012. Belarus is the only country from the CIS region among the most dynamic countries. Between 2011 and 2012, the country climbed five places to 41st position globally. The country has committed to an ambitious “State Programme for innovative development of Belarus for 2011-2015” in order to improve the quality of ICT services and to modernize and expand telecommunication networks.28 Improvements in both the access and the use sub-indices indicate a first success of the programme. Household connectivity made significant strides in 2012, the proportion of households with a computer increasing from 46 per cent in 2011 to 52 per cent in 2012 and the proportion of households with Internet access growing from 40 per cent in 2011 to 48 per cent in 2012. The indicators applied to measure the use sub-index all showed good progress. Most notably, fixed established terrestrial link via India has nearly doubled (wired)-broadband penetration went up from 22 per cent international Internet bandwidth per Internet user, from in 2011 to 27 per cent in 2012, which is by far the highest 1 500 Mbit/s to almost 3 000 Mbit/s by end 2012, as well penetration in the CIS region. At the same time, wireless as enhancing the reliability of Bangladesh’s international broadband is becoming increasingly important, having connectivity. While the advances made in the access sub- reached a penetration rate of 33 per cent by end 2012. index are very encouraging, little progress has been made MTS, the country’s largest mobile operator, has achieved in the use sub-index. Both fixed (wired)-broadband and 100 per cent 3G mobile-broadband population coverage in wireless-broadband penetration remain below 0.5 per cent. the countries’ cities and regional centres.29 The proportion The proportion of individuals using the Internet went up by of individuals using the Internet is increasing, too, reaching 26 per cent, to 6 per cent in 2012. 47 per cent in 2012, up from 40 per cent in 2011. 29 Chapter 2. The ICT Development Index (IDI) Brazil is among the most dynamic countries in the IDI 2012, increase, with all three mobile operators offering postpaid with a value increase of 0.41 as compared with the global and prepaid 3G plans. Further changes in the mobile sector average increase of 0.20. The country ranks 62nd in the IDI are to be expected with the anticipated introduction of MNP 2012. Improvements can be seen in both the access and in 2013.34 The country also stands out for its increase in the use sub-indices, with the strongest growth in the latter. number of households with Internet access, penetration Brazil stood out in the IDI 2011 for significantly improving climbing from 34 per cent in 2011 to 47 per cent in 2012. household connectivity, and the country continued to make great strides in 2012. The proportion of households Estonia improved its IDI by 0.54 value points between with a computer increased from 45 per cent in 2011 to 50 2011 and 2012, and in 2012 ranks 22nd, with an IDI of 7.28. per cent by end 2012. The proportion of households with Impressive progress was made in regard to both the access Internet access shows an even stronger growth, from 38 and use sub-indices, with the greatest improvements in the per cent in 2011 to 45 per cent in 2012. ICT household latter. Mobile-cellular penetration, already at a very high connectivity is one of the main emphases of Brazil’s national level in 2011, further increased to 155 per cent in 2012. broadband plan – Programa Nacional de Banda Larga (PNBL). The proportion of households with a computer and with The plan aims to bring fast (at least 1 Mbit/s) and affordable Internet access at home grew by around 6 per cent, to 76 per broadband access to 40 million Brazilian households by 2014 cent and 75 per cent, respectively. Estonia’s use sub-index (CGPID, 2010). The government has concluded agreements value increased by 1.08 value points, almost three times the with a number of Brazilian operators to extend broadband average increase. The penetration of Internet users (79 per access to communities, in particular in rural areas, and to cap cent) and fixed (wired)-broadband subscriptions (26 per monthly subscription prices at USD 30 to 35 for connections cent) continue to rise at very high rates. Most impressive offering speeds of 1 Mbit/s. The plan further includes tax are the developments in regard to wireless broadband: cuts for investments in network deployment and upgrades, penetration went up from 46 per cent in 2011 to 74 per cent and the revision of legal frameworks for deploying ICT in 2012, one of the highest penetration levels worldwide, infrastructure. Mobile broadband is an integral part of the and Estonians are ardent users of e- and m-services.35 In PNBL, and its expansion is promoted in order to increase 2012, no fewer than 94 per cent of Estonians filed their 31 broadband coverage and Internet usage throughout Brazil. tax declarations online. E-banking is another very popular The country’s wireless-broadband penetration rose from 22 online service, with 98 per cent of banking transactions per cent in 2011 to 37 per cent in 2012. Brazilian consulting carried out online. Mobile applications are being offered for firm Teleco reports that, by end 2012, 88 per cent of the public services as well, and Estonians can use their mobile Brazilian population was covered by a 3G network. Under phones to pay, for example, for parking (m-parking) or a the 3G licence agreement, operators were required to roll bus ticket (m-ticket).36 Estonia has also been singled out for out a 3G network to all cities with a population of more its achievements in terms of making superfast broadband than 200 000 people by April 2012, a goal that two of the available in homes. According to Point Topic, the country five licensees had achieved by the deadline. has made great progress in achieving one of the EU’s 30 32 most ambitious targets, namely to make sure that 100 per Costa Rica improved its IDI by 0.56, almost three times the cent of households can get very high-speed broadband global average increase. It moved up five places to 60th Internet access by 2012. A study at end 2012 showed that position, and improved its standing in the Americas region in Europe the country “is one of only two countries, together by overtaking Brazil (in 62nd position) in the IDI 2012. The with Finland, to claim 100 per cent coverage by HSPA, the monopoly of incumbent ICE was ended in November 2011, up-to-date standard for 3G broadband. It also has the when two new mobile operators, Claro (América Móvil) and third-highest availability of LGE, the 4G mobile standard”.37 Movistar (Telefónica), entered the mobile market (Box 2.5). 33 Strong growth in mobile subscriptions has been recorded Israel’s IDI rose by 0.41 value points, which is more than since then. Mobile-cellular penetration exceeded the twice the global average increase, to 7.11. The country number of inhabitants, and stood at 128 per cent by end ranks in 26th position in the IDI 2012. Growth was 2012. Wireless-broadband penetration saw an important strongest in the use sub-index, in particular in the number 30 Measuring the Information Society 2013 Box 2.5: Competition pushes Costa Rica above the regional average Until 2011, Costa Rica had one of the last remaining state of mobile connections.39 While penetration numbers were on telecommunication-sector monopolies in the world. The the rise before the introduction of competition, they started Instituto Costarricense de Electricidad (ICE), founded in 1963, to increase markedly once competition had been made a legal had been offering all main telecommunication services in the country, including mobile-cellular services through the brand kölbi. When Costa Rica signed the Dominican Republic-Central requirement, and much higher levels were reached after the market entry of the two new mobile operators, Claro (América America-United States Free Trade Agreement (CAFTA-DR) in Móvil) and Movistar (Telefónica) in November 2011. By end 2009, a liberalized telecommunication market was one of the 2012, mobile-cellular penetration had reached 128 per cent, requirements of the agreement. This effectively meant the end and exceeded the regional average.40 of ICE’s monopoly, which was enshrined in the 2008 General Telecommunications Law.38 As the ITU ICT Price Basket shows, ICT services in Costa Rica were relatively affordable even under the monopoly. For instance, in the IPB 2011, Costa Rica had the cheapest mobile- Further important developments in the mobile market include the introduction of wireless-broadband services, first offered by the then monopolist ICE in 200941 and now available from all Costa Rican mobile operators to both postpaid and prepaid cellular basket in terms of PPP$ in the region (ITU, 2012a). customers. By end 2012, wireless-broadband penetration had However, prior to the liberalization, mobile-cellular penetration reached 28 per cent, up from 10 per cent in 2011. In 2011, levels were below the regional average, at only 65 per cent in prior to market liberalization, the country’s first MVNOs were 2010 and 92 per cent in 2011 (Chart Box 2.5). launched by ICE to pre-empt any such moves by Claro and Costa Rica was lagging behind other countries in the region Movistar. This was also the first retailer launch of an MVNO in in terms of the introduction of new services: ICE’s 3G network the Latin American region by two Costa Rican electronics and was launched relatively late – in 2009 – and Costa Rica was furniture retailers.42 the last country in the world to offer its customers mobilecellular prepaid services, in 2010. Furthermore, waiting lists Further changes are on the horizon for the country’s mobile for mobile services were often long, as ICE was running out market, with both MNP43 and LTE to be launched in 2013. Chart Box 2.5: Mobile-cellular subscriptions per 100 inhabitants, Costa Rica and the Americas region, 2009-2012 128.0 120 100 Per 100 inhabitants 2008 General Telecommunications Law of Costa Rica ends the era of telecommunication monopoly and paves the way for the creation of an independent regulatory authority (Sutel) 105.3 80 Costa Rica 60 The Americas 40 November 2011: Claro (América Móvil) and Movistar (Telefónica) enter the Costa Rican mobile-cellular market 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: ITU World Telecommunication/ICT Indicators database. 31 Chapter 2. The ICT Development Index (IDI) of Internet users and wireless-broadband subscriptions. than the global average. Great strides were made in terms of Wireless-broadband penetration climbed by more than ICT household connectivity: the percentage of households 61 per cent, from 41 per cent in 2011 to 65 per cent in with a computer shot up from 24 per cent in 2011 to 30 2012. In June 2012, two mobile operators, Golan Telecom per cent in 2012, and the proportion of households with and HOT Mobile, launched 3G services.44 This brings the Internet access progressed in equal measure, from 9 per cent total number of mobile operators in the country to five, in 2011 to 14 per cent in 2012. The ICT sector has been an all of them offering mobile-broadband services. Israel important focus of the government’s development strategy, has a competitive Internet market environment, with five and several policy programmes have been put in place to main ISPs and 45 smaller licence-holders, and a highly- foster ICT development in the country. One of the objectives developed infrastructure. Ninety-nine per cent of homes of the national broadband programme, to be implemented are within reach of a fixed (wired)- broadband connection, by 2015, is the provision of affordable broadband access. The and fixed (wired)-broadband penetration had reached establishment of services such as e-government, e-learning 22 per cent by end 2012. In 2012, a total of 73 per cent and e-health have also been identified by the Mongolian of the Israeli population were using the Internet, up from Government as crucial development enablers.47 Wireless 69 per cent in 2011. Apart from Israel’s well-developed broadband is of particular importance for connecting broadband infrastructure, the Ministry of Communications people to the Internet in a country like Mongolia, with attributes the strong growth in the number of Internet its nomadic tradition and being one of the least densely users to the vast offer of local content and language populated countries in the world.48 Wireless-broadband websites as well as extensive e-government services.45 penetration has increased significantly, from 17 per cent in 2011 to 27 per cent in 2012. The percentage of individuals Lebanon has an IDI value of 5.37, and ranks 52nd in the using the Internet has increased, too, with 16 per cent of IDI 2012. It is the country with the highest increase in IDI Mongolians using the Internet in 2012, up from 13 per cent value of 0.75 points. In the IDI 2011, the country stood in 2011. out for increases in the access sub-index (ITU, 2012a). The 2012 data show that while the access sub-index value Oman improved its IDI by 0.56 value places and four ranks, continues to improve, Lebanon was able to translate moving up to 54th position in the IDI 2012. Progress is visible progress in ICT access and infrastructure into more intense on both the access and use sub-indices, and can be linked use of services. The country’s broadband market has seen to the country’s e-Oman digital strategy (Box 2.6). Wireless- a number of changes between 2011 and 2012, in particular broadband penetration has seen a sizeable increase, from with the introduction of wireless broadband. 3G was 39 per cent in 2011 to 58 per cent in 2012, and the country’s commercially launched in November 2011 by Touch and operators are not only expanding the 3G network but also Alfa, Lebanon’s two state-owned mobile operators, and deploying WiMax and LTE.49 Mobile broadband is relatively wireless-broadband penetration went up from 11 per cent affordable in Oman: the 1 GB postpaid computer-based in 2011 to 26 per cent in 2012. Fixed (wired)-broadband basket remains below 1 per cent of GNI p.c. and is one of penetration more than doubled, from 5 per cent in 2011 the cheapest in the region (see Chapter 3). Internet usage to 12 per cent in 2012. A new entry-level broadband plan proportion increased between 2011 and 2012, from 48 per was introduced by governmental decree in September cent to 60 per cent. 2011, lowering the cost of entry-level broadband by 70 per cent. The price of this new package lies below the Seychelles improved its ranking by six places, and now Arab States average, according to a study by the Lebanese stands in 64th position in the IDI 2012. All indicators Telecommunications Regulatory Authority (TRA).46 The included in the use sub-index showed consistent growth proportion of individuals using the Internet climbed rates from 2011 to 2012. The percentage of individuals to 61 per cent in 2012, up from 52 per cent in 2011. using the Internet (47 per cent) and the country’s fixed (wired)-broadband penetration (12 per cent) are the Mongolia moved up five places to 85th in the IDI 2012. Both highest of all countries in the Africa region. Seychelles the access and the use sub-index values improved by more stands out for gains in the access sub-index. From 2011 32 Measuring the Information Society 2013 Box 2.6: Oman boasts second highest wireless-broadband subscriptions penetration in the region The Omani Government has undertaken several initiatives The Telecommunications Regulatory Authority (TRA) has been to foster ICT development and increase rural connectivity in working with the mobile operators to extend network coverage, particular. The country’s digital strategy – e-Oman, adopted improve rural connectivity and provide faster broadband in 2002 – is based on six main pillars that are aimed at turning access through 3G and LTE services. In 2012, important the country into an information society. They include the network upgrades were undertaken by the country’s two development of Oman’s human capital, its ICT industry and mobile operators. Omantel launched its LTE network in July national content, and the enhancement of ICT infrastructure and e-government services. E-Oman also focuses on infrastructure development, in particular the provision of affordable fixed- and wireless-broadband access.50 2012,51 and the second mobile operator, Nawras – through the Turbocharging Programme – has been upgrading its base stations to improve 3G coverage and introduce LTE and WiMAX services.52 In June 2012, TRA announced a plan to bring basic telecommunication services to 150 villages in remote and rural Chart Box 2.6: Wireless-broadband subscriptions, Arab States, 2011 and 2012 Per 100 inhabitants 80 2011 70 2012 areas of the Sultanate by the end of 2013.53 Special attention has been given to e-government and wireless services. The e-government portal Omanuna was created to provide government services and information online. Omanuna 60 includes a mobile portal through which a number of services 50 can be accessed via a mobile phone.54 Wireless-broadband 40 penetration in particular increased substantially, from 39 per cent 30 in 2011 to 58 per cent in 2012. Oman now has the second-highest 20 wireless-broadband penetration in the region, topped only by 10 the region’s highest-ranked country, Qatar (72 per cent) (see Qa t Om ar a Sa ud U n i A AE ra Ba bia hr ai E n Le gyp ba t n Su on Jo dan M rda or n oc M Tun co au is rit ia an Sy ia Ye ria Co me m n Dj oro ib s ou ti 0 Source: ITU World Telecommunication/ICT Indicators database. Chart Box 2.6). The country has also made important progress in bringing more people online, and the proportion of individuals using the Internet rose by around 25 per cent, from 48 per cent in 2011 to 60 per cent in 2012. to 2012, it improved its score by 0.62 value points, more in 2012. A household survey conducted by the country’s than three times the average increase. With the landing of Telecommunication Regulatory Authority (TRA, 2012) the Seychelles East Africa System (SEAS) fibre-optic cable, confirms that virtually all residents use a mobile phone and available international Internet bandwidth almost tripled that 85 per cent of the population use the Internet regularly, in 2012. SEAS was implemented under a private-public and for the most part through a high-speed connection (Box partnership between Seychelles’ Government and the 2.7). In the use sub-index, UAE registered great progress in archipelago’s two main telecommunication operators, Airtel the number of wireless-broadband subscriptions. By end and Cable and Wireless. 2012, penetration had reached 51 per cent, as against 22 per 55 cent the previous year. Furthermore, services are relatively The United Arab Emirates records the highest increase cheap: the UAE ranks among the most affordable countries in rank, shooting up 12 places to 33rd in the IDI 2012. for prepaid mobile-broadband services, which cost less than Value increases in the access and use sub-indices are 1 per cent of GNI p.c. (see Chapter 3). both considerably above the global average. All indicators included in the access sub-index showed improvement Zambia, the country with the lowest IDI among the most from 2011 to 2012. Mobile-cellular telephone penetration dynamic countries, managed to improve its ranking by five in particular rose by more than 14 per cent, to 170 per cent places to 132nd, with an IDI of 1.77. While the use sub-index 33 Chapter 2. The ICT Development Index (IDI) Box 2.7: An ICT user profile from the United Arab Emirates The United Arab Emirates achieved the highest increase number of mobile-broadband customers access the Internet in IDI rank and the second highest increase in IDI value via their mobile phones (45 per cent) or their laptops (47 between 2011 and 2012, and now stands in 33rd position per cent). in the IDI 2012, with an IDI value of 6.41. Both its access and use sub-index values increased by many times the global average. A household survey commissioned by the UAE Telecommunication Regulatory Authority ( TRA) provides insights into the usage of ICTs in the country (TRA, 2012). The proportion of households with Internet access at home has improved significantly over the past year, standing at 72 per cent by end 2012 (see Chart Box 2.7). Almost all home Internet subscriptions are to broadband services (92 per cent are ADSL and 7 per cent are mobile-broadband connections). The With regard to mobile-cellular telephony, the survey, which percentage of individuals using the Internet is one of the highest included individuals between the ages of 15 and 74, 56 in the world at 85 per cent (Chart Box 2.7). Of those, 80 per cent found that virtually all the survey participants use a mobile access from home and 56 per cent from work. Most users access phone. Mobile-cellular penetration stood at 170 per cent the Internet on a very regular basis: 75 per cent of those accessing by end 2012, and the survey confirms that 32 per cent of from home did so at least once a day. Internet users in the UAE customers have more than one SIM card in use on a regular spent 58 per cent of their time on English-language websites, basis (see Chart Box 2.7). The main reasons for owning while 37 per cent of time spent online is on Arabic websites. The multiple SIM cards include: to take advantage of different most common activity online is using e-mailing services (88 per promotions offered by the two operators (60 per cent), to cent), followed by social networking (83 per cent) and reading have a separate card for private and business use (59 per online newspapers or magazines (72 per cent). cent), and to benefit from better connectivity in different The survey confirms that social networking sites are very regions of the United Arab Emirates (18 per cent). Prepaid popular among Internet users in the United Arab Emirates, and telephony is the preferred choice among customers, with 86 can be identified as one of the drivers of Internet usage. A total per cent of subscriptions being prepaid. At the same time, of 69 per cent of users have a profile on a social networking 43 per cent of SIM cards have been owned for more than five site, of which Facebook is by far the most popular. The majority years. The TRA survey further revealed that an almost equal of users with a profile visit the social networking site every day. Chart Box 2.7: Mobile-cellular subscriptions (left), individuals using the Internet (centre), households with Internet access (right), 2011 and 2012 170 180 85 90 78 80 120 100 86 91 80 60 Per 100 inhabitants Per 100 inhabitants 80 2012 70 70 140 50 40 33 36 30 20 20 10 World 50 40 34 37 30 20 10 0 0 United Arab Emirates 72 67 60 60 40 0 United Arab Emirates Source: ITU World Telecommunication/ICT Indicators database. 34 2011 Per 100 households 160 149 World United Arab Emirates World Measuring the Information Society 2013 shows no significant increase, growth in the access subindex is above the global average. This is due to an increase in the country’s mobile-cellular penetration, from 61 per cent in 2011 to 76 per cent in 2012. Rural connectivity has become an increasingly important issue for policy-makers, who are taking concrete steps to connect remote and rural areas. These include a tax waiver on GSM equipment passed by the Zambian government in 2011, which has allowed mobile operators to extend the country’s mobile network.57 Several network-extension projects have been implemented by the country’s mobile operators, and the private sector is trying to extend coverage and services. This also means dealing with grid-power shortages that often afflict rural areas. MTN, for example, has set up “solar green sites” to connect remote areas that had previously been cut off on account of limited and costly electricity.58 Other projects are based on public-private partnerships, including Airtel partnering with the Zambian Information Communication and Technology Authority (ZICTA) to expand the mobile network to rural areas. This project, which is financially supported by the government, is part of the Universal Access Network Roll-out project59 (Box 2.8). Zimbabwe is among the most dynamic countries in the IDI 2012, having moved up four places in the overall IDI ranking, to 115th position. The country made significant progress on both the access and the use sub-indices of the IDI. In both sub-indices, it is the mobile/wireless indicators Box 2.8: Rural roll-out in Zambia Zambia has registered a significant increase in mobile-cellular towers existed in Zambia, providing network coverage to 78 penetration, from 61 per cent in 2011 to 76 per cent in 2012. per cent of the territory.60 However, mobile-cellular services are While this still puts the country behind the average penetration concentrated in urban areas, and the Zambian government in developing countries (84 per cent), mobile-cellular penetration has initiated a rural roll-out project to cover all of the country’s in Zambia is well above the African regional average of 60 per chiefdoms in cooperation with Zambia’s three mobile cent (see Chart Box 2.8). operators and other relevant stakeholders, such as the The Zambian Government understands ICTs to be a development enabler, and has committed to making services available to its citizens in rural and remote areas of the country. In 2012, according to the Ministry of Transport, Works, Supply and Communication, a total of 2 070 mobile-communication Electrification Unit, funded through the Universal Access Fund.61 The project has faced a number of challenges, including “lack of access roads, lack of commercial power, vandalism of erected sites (…), poor demand resulting in poor or no return on investment for operators (…)”, which has slowed down the roll-out.62 The lack of an energy infrastructure in rural Zambia constitutes a major obstacle, and the expansion of the power Chart Box 2.8: Mobile-cellular subscriptions, 2011 and 2012 Authority (REA) is implementing its rural electrification programme to provide access to electricity by the year 2030, from which mobile operators can also benefit.63 Solar energy 90 80 Per 100 inhabitants grid is an expensive undertaking. The Rural Electrification 70 2011 represents an alternative that has been exploited by the 2012 operator MTN, which erected the first solar site in early 2012, 60 with further sites being planned.64 50 Zambia’s end-2012 mobile-cellular penetration rate confirms 40 the initial success of the roll-out project. Airtel Zambia has 30 indicated that a significant proportion of its new customers are 20 from rural areas.65 The challenge that lies ahead is to increase 10 broadband penetration and bring an increasing number 0 Developing country average Zambia Africa of Zambians online. By end 2012, the country’s wirelessbroadband and fixed (wired)-broadband penetration rates still languished at below 1 per cent, and the proportion of Source: ITU World Telecommunication/ICT Indicators database. households with Internet access did not exceed 3 per cent. 35 Chapter 2. The ICT Development Index (IDI) Figure 2.3: IDI spider charts, selected dynamic countries, 2011 and 2012 Albania 2012 2011 Literacy Tertiary enrolment Secondary enrolment Australia Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Bahrain 2012 2011 Literacy Tertiary enrolment Secondary enrolment Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Literacy Tertiary enrolment Secondary enrolment 36 Households with Internet Internet users Belarus Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Internet users Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Barbados 2012 2011 Households with Internet Bangladesh Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Households with Internet Internet users Measuring the Information Society 2013 Figure 2.3: IDI spider charts, selected dynamic countries, 2011 and 2012 (continued) Costa Rica Brazil 2012 2011 Literacy Tertiary enrolment Secondary enrolment Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Estonia 2012 2011 Literacy Tertiary enrolment Secondary enrolment Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Literacy Tertiary enrolment Secondary enrolment Households with Internet Internet users Lebanon Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Internet users Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Kenya 2012 2011 Households with Internet Israel Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Households with Internet Internet users 37 Chapter 2. The ICT Development Index (IDI) Figure 2.3: IDI spider charts, selected dynamic countries, 2011 and 2012 (continued) Oman Mongolia 2012 2011 Literacy Tertiary enrolment Secondary enrolment Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Seychelles 2012 2011 Literacy Tertiary enrolment Secondary enrolment Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Literacy Tertiary enrolment Secondary enrolment Households with Internet Internet users 2012 2011 Literacy Tertiary enrolment Secondary enrolment Internet users Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Note: These charts show normalized values of the indicators included in the IDI. Source: ITU. 38 Households with Internet Zimbabwe Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Internet users Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Zambia 2012 2011 Households with Internet United Arab Emirates Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Wirelessbroadband subscriptions Fixed (wired)-broadband subscriptions Fixed-telephone subscriptions Mobile-cellular 1.0 subscriptions 0.8 0.6 International Internet bandwidth 0.4 per Internet user 0.2 0.0 Households with a computer Households with Internet Internet users Measuring the Information Society 2013 where the most progress was made. Zimbabwe’s mobile- the current (2012) divide but also to ascertain whether the cellular penetration went up from 72 per cent in 2011 to 97 divide has been increasing or decreasing over the past year. per cent in 2012. In the use sub-index, wireless-broadband penetration doubled from 15 to 30 per cent over the same An analysis of the IDI points to a significant divide between period. As a result, Zimbabwe has the second-highest the developed and developing world. In 2012, the average penetration rate in Africa, just after Ghana (34 per cent). In developed-country IDI value was exactly twice as high as 2012, Zimbabwe’s three mobile operators undertook roll-out the developing-country average. At the same time, the projects and increased coverage, especially in rural areas of developing-country average IDI value is growing faster, at the country. At the same time, the country’s Postal and a rate of 5.8 per cent, as against 3.5 per cent for developed Telecommunications Regulatory Authority (POTRAZ) has countries. While developed countries are starting to reach started to set up base stations in the country’s underserved saturation levels, in particular in terms of mobile-cellular areas, funded through the Universal Services Fund (USF). 67 subscriptions and household ICT access, developing Apart from infrastructure projects, m-banking is gaining countries, where penetration levels remain much lower, importance in Zimbabwe and increasing the popularity continue to have ample potential for growth (Chart 2.1). 66 of mobile services. The country’s leading operator, Econet Wireless, started a mobile payment service – Ecocash – in The difference in the access sub-index (Chart 2.2), which 2011, which attracted 1.7 million customers in its first year measures ICT infrastructure and readiness, is smaller than and, according to the company, is the region’s second most the difference in the use sub-index, thus confirming that successful service after Kenya’s m-pesa. Statistics from developing countries have been able to make greater POTRAZ further show that the highest share of investments progress in providing basic ICT access. Progress has been in the telecommunication and postal sector was in data achieved particularly through mobile-cellular technology, and Internet services (78 per cent of total investments in but also through an increase in household access to the second quarter of 2012). ICTs and increased availability of international Internet 68 69 bandwidth. Between 2011 and 2012, the access sub-index in the developing countries grew three times as fast as in 2.3 Monitoring the digital divide: developed, developing and least connected countries the developed world. The divide, which is measured as the difference in IDI values between groups, is largest in terms of the use sub-index, which measures the uptake and intensity of ICT use. Here, One of the key purposes of measuring ICT developments developed countries have reached over three times the and for which ITU produces the IDI is to assess and track the average 2012 IDI value of developing countries (Chart 2.3). global digital divide. The digital divide can be understood This gap points to the considerable differences that exist as the difference in ICT access and use between countries, between the developed and developing world in terms of between regions, or between other groupings that share Internet users and fixed (wired)-broadband and wireless- common characteristics. At the global level, a common broadband subscriptions. In many developing countries, way of identifying differences between countries is to look broadband access remains very limited, and still today some at national ICT levels in relation to the world average, or to countries have not yet launched 3G high-speed mobile group the world into developed and developing countries broadband networks, effectively limiting the potential to and compare their respective performance. bring more people online. At the same time, the use subindex is growing at twice the speed in developing countries. The IDI is an especially useful tool for comparing differences This is a positive development, suggesting that developing in ICT developments since, as a composite index, it countries are catching up. consolidates several ICT indicators into one single value. On the basis of the 2012 and 2011 data presented in this The smallest differences between developed and developing chapter, it is possible not only to gauge the magnitude of countries and smallest change between 2011 and 2012 are 39 Chapter 2. The ICT Development Index (IDI) Chart 2.1: IDI, world and by level of development 9 9 8 8 6.5 6.8 7 2011 6 5 IDI Chart 2.4: IDI skills sub-inde, world and by level of development 2012 4.2 4.4 4 Change: +3.5% 3 2 Change: +4.8% 3.4 3.3 Change: +5.8% 1 7 IDI skills sub-index 8.7 8.7 2012 6.6 6.6 5.8 5.8 6 Change: +0.0% 5 4 3 2011 Change: +0.0% Change: +0.1% 2 1 0 World Developed Developing Chart 2.2: IDI access sub-index, world and by level of development 0 World Developed Developing Note: Simple averages. Source: ITU. 9 8 IDI access sub-index reached very high levels of literacy and school enrolment, 2012 4.6 4.7 3.7 3.9 4 Change: +1.9% 3 2 time to come into effect. While developed countries have 2011 6 5 found in the skills sub-index (Chart 2.4), where changes take 7.0 7.1 7 Change: +3.9% equipped with basic skills to enable them to participate in the information society. This is particularly – and increasingly Change: +5.3% 1 developing countries need to ensure that all citizens are – important as infrastructure barriers are being overcome and ICTs are made available to an increasingly large 0 World Developed Developing : Chart 2.3: IDI use sub-index, world and by level of development proportion of the world’s population. Another way of analysing the digital divide is by tracking the IDI range that separates the countries with the highest and the lowest IDI values. This exercise helps to understand how 9 8 IDI use sub-index 7 6 5.1 2011 the top performers are evolving compared to those at the 2012 bottom. Between 2011 and 2012, the IDI range remained the same globally as well as in developing countries (7.58 for 5.5 both), suggesting that the countries with the highest and the 5 4 3 2 1 2.5 2.8 Change: +8.6% Change: +17.3% 1.6 Change: +12.5% 1.8 lowest ICT levels developed at similar speeds. The IDI range in developed countries, on the other hand, decreased from 4.61 to 4.34, indicating that the gap between the top and bottom performers within the developed-country group is closing slightly. Indeed, the maximum and minimum IDI 0 World Developed Developing values in the developed countries show that, between 2011 and 2012, the IDI of the top performer increased only slightly Note: Simple averages. Source: ITU. 40 (from 8.41 to 8.45), while the IDI of the developed country with the lowest value increased from 3.80 to 4.11 (Table 2.4). Measuring the Information Society 2013 Table 2.4: IDI by level of development, 2011 and 2012 IDI 2012 IDI 2011 Average value* Min. Max. Range StDev CV Average value* Min. Max. Range StDev CV Change in average value 2011-2012 World 4.35 0.99 8.57 7.58 2.19 50.28 4.15 0.93 8.51 7.58 2.13 51.32 0.20 Developed 6.78 4.11 8.45 4.34 1.14 16.82 6.55 3.80 8.41 4.61 1.16 17.66 0.23 Developing 3.44 0.99 8.57 7.58 1.75 50.79 3.25 0.93 8.51 7.58 1.67 51.26 0.19 Note: * Simple average. StDev: Standard deviation, CV: Coefficient of variation. Source: ITU. For both developed and developing countries, the groups based on countries’ level of ICT development, i.e. coefficient of variation (CV), which measures the variation their IDI value. To this end, four groups/quartiles were or dispersion of all IDI values from the mean IDI values, formed, reflecting four different levels of ICT development: decreased slightly between 2011 and 2012, suggesting that high, upper, medium and low (Table 2.5). both groups became slightly more homogeneous. Between 2011 and 2012, the IDI range within each group One shortcoming of grouping countries into only two decreased for the high and upper IDI groups, and increased categories (developed and developing) is that the for the medium and low IDI groups. This suggests that categories each include countries at very different stages while countries with higher IDI levels are moving at similar of ICT development. The developing-country group, for speeds, the difference in IDI levels of those at the lower instance, which is defined on the basis of the United end is increasing. The high and upper groups also have Nations classification, also includes ICT champions such as smaller coefficients of variation (CV) than the medium and the Republic of Korea, Hong Kong (China) and Singapore. low groups, suggesting that there is more variation in IDI in the groups with lower levels of ICT development. Between Another way of grouping and comparing countries in order 2011 and 2012, the CV decreased slightly for the medium IDI to monitor and analyse the digital divide is by creating group, but increased for the low IDI group. This highlights Table 2.5: IDI by groups, 2011 and 2012 IDI 2012 Group Number Average of counvalue* tries IDI 2011 Min. Max. Range StDev CV Average value* Min. Max. Range StDev CV High 40 7.30 6.19 8.57 2.38 0.72 9.86 7.06 5.68 8.51 2.83 0.78 11.11 Upper 39 5.08 4.17 6.11 1.95 0.59 11.55 4.80 3.86 5.91 2.05 0.60 12.44 Medium 39 3.31 2.40 4.11 1.70 0.53 15.89 3.12 2.16 3.80 1.64 0.52 16.58 Low 39 1.64 0.99 2.33 1.34 0.36 21.95 1.56 0.93 2.19 1.25 0.33 20.97 Total 157 4.35 0.99 8.57 7.58 2.19 50.28 4.15 0.93 8.51 7.58 2.13 51.32 Note: * Simple average. StDev: Standard deviation, CV: Coefficient of variation. Source: ITU. 41 Chapter 2. The ICT Development Index (IDI) Box 2.9: The least connected countries (LCCs) – home to 2.4 billion people – are not making enough progress to reduce the digital divide The world’s least connected countries (LCCs) are the group of relatively late. Some, like Chad, the Central African Republic and 39 countries with low IDI 2012 values, based on a categorization Niger had not launched 3G services by end 2012. that divides the 157 countries included in the IDI into four groups (high, upper, medium, and low). In these LCCs, most ICT access and use is limited to basic voice and low-speed data services. While a number of LCCs have reached relatively high levels The LCCs include many of the world’s least developed countries (LDCs), and the majority are in Africa. However, they also include a number of highly populated countries that are not LDCs, including India, Nigeria and Pakistan, and they represent a total of mobile-cellular penetration, more advanced ICT services, population of 2.4 billion, which is more than one-third of the including broadband Internet access, remain very limited. world’s total (2012) population. In the majority of LCCs, Internet access is limited, hardly ever They are the countries that could potentially derive great benefits high-speed, very expensive, and used by only a small percentage from better access to and use of ICTs, including in areas such as of the population. In Cameroon, Djibouti, Pakistan, Rwanda and health, education and employment. Most of the countries on the Togo, fewer than one in ten people use the Internet. In Papua list of LCCs are also those that are lagging behind with respect to New Guinea, Myanmar, Eritrea and Niger, fewer than 2 per cent the Millennium Development Goals (MDGs). This highlights the of the population is online. The LCCs also tend to have very low need to give special attention to these countries and to adapt fixed- and mobile-broadband penetration levels, and most only national policies so that they can make the most of ICTs in order launched and commercialized 3G mobile-broadband networks to help foster development and achieve the MDGs. Figure Box 2.9: Least connected countries (LCCs), 2012 IDI value: Above 2.33 LCC (2.33 and below) Data not available Source: ITU. that this latter group – comprising the lowest quartile of increase in the average IDI value between 2011 and 2012 the 157 countries included in the 2012 IDI – is becoming (of only 0.08). Introduced as “least connected countries” more heterogeneous and that the divide within this group (LCCs) in last year’s MIS report (ITU, 2012a), the countries in is widening. Additionally, this group of countries with very this group are not making enough progress to catch up in low levels of ICT uptake and use also recorded the smallest terms of ICT developments (Box 2.9). 42 Measuring the Information Society 2013 Chart 2.5: IDI and GNI per capita 10 Korea (Rep.) 9 8 Estonia 7 United Arab Emirates IDI 2012 6 Moldova 5 Brunei Darussalam 4 Botswana 3 Gabon 2 Angola 1 R² = 0.8848 0 0 10'000 20'000 30'000 40'000 50'000 60'000 GNI per capita, PPP$, 2011 Source: ITU. There are many reasons why some countries lag behind Darussalam, but also Angola, Gabon and Botswana. The in terms of ICTs. While governments can foster ICT growth comparison suggests that, in these countries, focused and uptake to a certain extent, including by creating an policies and government action could quickly lead to open regulatory framework and encouraging private- higher ICT levels. sector investment, there is a strong link between ICT uptake (and other development issues) and income ITU has repeatedly highlighted the link between the uptake levels. Indeed, a regression analysis of IDI values and GNI of ICTs and the price of telecommunication services. per capita shows a high R-squared value (0.88), which Unless voice and Internet services are affordable, people confirms the strong relationship that exists between how will not be able to use and take advantage of them. Prices wealthy countries are and how advanced their information are increasingly a subject of investigation by regulatory societies are (Chart 2.5). authorities in charge of ensuring fair competition and Despite the strong link between income and IC T development variables, some countries are faring comparatively better (or worse) than their income levels would predict. Countries such as the Republic of Korea, Estonia and Moldova, for example, lie well above the regression curve and have relatively high IDI values in consumer protection, and the importance of prices and the differences between countries are further elaborated on in Chapter 3 of this report. A comparison of the IDI with the ICT Price Basket (IPB), ITU’s unique metric that compares the affordability of ICT services in more than 160 countries worldwide, confirms the link between ICT relation to their gross national income (GNI) level. The uptake and affordability (Chart 2.6). A high R-squared Republic of Korea and Estonia, in particular, have made value of 0.85 substantiates the claim that relatively high ICTs a national priority and showcased clear leadership in prices tend to hamper the spread of ICTs, while affordable developing and using ICTs and formulating targeted ICT services foster their uptake and use. Countries with very policies that have driven ICT growth and uptake. Countries high ICT prices and very low ICT levels, in particular, must with relatively high income levels but comparatively lower address pricing policies in order to allow more people to IDI values include the United Arab Emirates and Brunei join the information society. 43 Chapter 2. The ICT Development Index (IDI) Chart 2.6: IDI and IPB 12 10 IDI 2012 8 6 4 R² = 0.8547 2 0 0 10 20 30 40 50 60 70 IPB 2012 Source: ITU. 2.4 IDI sub-indices: access, use and skills cellular penetration rates of around 30 per cent or less. On the basis of the underlying conceptual framework, which with 4 per cent in developed countries), and many identifies three stages in the evolution of countries towards becoming information societies, the ICT Development Index (IDI) is divided into the three sub-indices: ICT access, ICT use and ICT skills. Each sub-index is composed of a set of indicators that capture these different stages (see section 2.1). Between 2011 and 2012, mobile-cellular growth rates stood at around 8 per cent in developing countries (as compared developing countries, such as Cambodia, Cameroon, Costa Rica, Rwanda and Zambia, continue to achieve significant increases in the number of mobile-cellular subscriptions. Major advances are also being made in terms of increasing international Internet bandwidth, and a number of new Access sub-index fibre-optic submarine cables are providing countries with The access sub-index of the IDI measures ICT infrastructure bandwidth demand growth has been robust on all five of and readiness – a basic requirement for using and benefiting the world’s major submarine cable routes, but has been from ICTs – and is composed of five indicators: fixed- particularly rapid on key routes to emerging markets in telephone subscriptions per 100 inhabitants, mobile-cellular Asia, Africa, the Middle East and Latin America”.70 While a telephone subscriptions per 100 inhabitants, international number of landlocked developing countries, such as the Internet bandwidth per Internet user, percentage of Central African Republic and Chad, continue to suffer from households with a computer, and percentage of households very low levels of international connectivity, many countries, with Internet access at home. including Indonesia, Kenya, Lebanon and South Africa, have more capacity. According to Telegeography, “International benefited from new cable deployments, and public-private Globally, mobile-cellular penetration has reached a high partnerships to distribute them. of 96 per cent, and a total of 98 economies (out of the 157 included in the IDI) have attained penetration levels above The level of household access to ICTs varies greatly among 100 per cent. In 2012, only few economies, such as Cuba, the countries included in the IDI. While in some countries Eritrea, Ethiopia, Mozambique and Niger, recorded mobile- practically all households have a computer and Internet 44 Measuring the Information Society 2013 Box 2.10: Abundant and secure international Internet bandwidth and fast broadband to protect and run Hong Kong (China)’s financial centre Hong Kong (China)’s telecommunication regulator has ensured of the world’s leading business and financial centres. OFCA’s goal that, as one of the world’s key financial hubs, Hong Kong has is to ensure that “consumers get the best services available in an abundant amount of bandwidth. Its international Internet terms of capacity, quality and price”. By end 2012, Hong Kong bandwidth per Internet user is the second highest in the world (China) had 185 licensed broadband Internet service providers (after Luxembourg). In December 2012, the eighth high-speed and about 2.27 million registered customers (from a population undersea cable system, the Asia Submarine-cable Express (ASE), of just over 7 million) enjoying broadband services with speeds landed in Hong Kong (China), and more cables are planned. ACE up to 1’000 Mbit/s. Some 87 per cent of households had fixed “offers both unparalleled ultra-low latency performance to the broadband at home, and Hong Kong is also one of the world region as well as high resiliency on natural disasters and supports leaders in the deployment of FTTH/B technologies. In addition to enterprises’ growth in particular financial institutions for which a highly competitive 3G market, all five mobile network operators every millisecond counts in the highly competitive market”.71 have deployed LTE technology. According to the Office of the Communications Authority ITU price data also show that Hong Kong’s fixed- and mobile- (OFCA), the state-of-the-art telecommunication infrastructure broadband services are very affordable, in particular when has been an important factor in making Hong Kong (China) one compared internationally (see Chapter 3). Source: ITU, based on http://www.gov.hk/en/about/abouthk/factsheets/docs/telecommunications.pdf. access, penetration rates remain very low in many of the at the top of the overall IDI also have a very high access low-income economies. In Bangladesh, Burkina Faso, sub-index value. The list is topped by Hong Kong (China), Democratic Republic of the Congo and Liberia, for example, which displays a very high value of 9.18, and also ranked fewer than 5 per cent of households have a computer. first in last year’s access sub-index. An important financial In Mali, Myanmar and Rwanda, fewer than 3 per cent of hub, Hong Kong (China) continues to make sure that it has households have Internet access at home. To increase ICT access to abundant international Internet bandwidth and access in homes, services need to be made available and that it benefits from a high degree of competition, the latest affordable, and an increasing number of countries have instituted specific programmes and set goals for connecting homes. According to the latest report of the Broadband Commission for Digital Development, on broadband plans, 58 per cent of broadband plans in 2013 reference household targets. In total, some 133 countries (around 70 per cent) had a national broadband plan.72 Most countries in the world are not making any changes in terms of their fixed-telephone penetration, and growth has been negative in developed and developing regions since 2009. Exceptions, where an increase in the number of fixed-telephone subscriptions has influenced countries’ IDI access sub-index value, include Moldova, Seychelles and broadband technologies and low prices (Box 2.10). The list of the top ten economies on the access sub-index includes a number of other smaller economies (Luxembourg, Iceland, Switzerland, Singapore and Malta), but also countries with large populations (Germany and the United Kingdom) (Table 2.6). The IDI access sub-index highlights very important differences in ICT readiness worldwide. While the top performer is approaching the maximum value of ten, the countries at the bottom (Central African Republic and Eritrea) have access values of just above one. The range that separates the countries at the top from the United Arab Emirates. those at the bottom actually increased slightly between Given the importance of basic access as a prerequisite divide in basic access to ICTs is far from being bridged for making use of ICTs, many of the economies that rank (Table 2.1). 2011 and 2012 (from 8.01 to 8.06), suggesting that the 45 Chapter 2. The ICT Development Index (IDI) Table 2.6: IDI access sub-index, 2011 and 2012 Rank Access Rank Access Economy 2012 2012 2011 2011 Hong Kong, China 1 9.18 1 9.13 Luxembourg 2 8.93 2 8.72 Iceland 3 8.77 3 8.71 Switzerland 4 8.73 4 8.61 Germany 5 8.51 5 8.48 United Kingdom 6 8.46 7 8.30 Sweden 7 8.37 6 8.36 Singapore 8 8.31 9 8.21 Netherlands 9 8.28 8 8.23 Malta 10 8.28 11 8.16 Korea (Rep.) 11 8.28 10 8.19 Denmark 12 8.18 12 8.14 Austria 13 7.96 15 7.74 France 14 7.95 14 7.77 Macao, China 15 7.93 13 7.91 Japan 16 7.73 17 7.64 Norway 17 7.72 16 7.70 New Zealand 18 7.69 22 7.49 Belgium 19 7.67 18 7.58 Finland 20 7.66 20 7.55 Canada 21 7.65 19 7.58 Australia 22 7.64 21 7.55 Ireland 23 7.59 23 7.49 Israel 24 7.57 24 7.38 United Arab Emirates 25 7.31 35 6.73 Barbados 26 7.29 28 7.03 Estonia 27 7.27 29 7.00 Bahrain 28 7.25 34 6.82 United States 29 7.24 26 7.12 Slovenia 30 7.23 25 7.17 Italy 31 7.15 27 7.08 Qatar 32 7.10 32 6.88 Spain 33 7.05 30 6.99 Antigua & Barbuda 34 7.03 31 6.94 Portugal 35 7.00 33 6.83 Saudi Arabia 36 6.76 38 6.58 Russian Federation 37 6.73 39 6.53 Greece 38 6.69 36 6.58 Croatia 39 6.66 37 6.58 Czech Republic 40 6.60 40 6.49 Kazakhstan 41 6.60 47 6.14 Brunei Darussalam 42 6.55 42 6.35 Lithuania 43 6.47 41 6.44 Poland 44 6.46 43 6.32 Hungary 45 6.46 44 6.30 Cyprus 46 6.45 45 6.29 Belarus 47 6.41 53 6.01 Uruguay 48 6.38 49 6.06 Bulgaria 49 6.33 50 6.04 Slovakia 50 6.28 48 6.13 Latvia 51 6.25 52 6.02 St. Vincent and the Gr. 52 6.12 51 6.02 Seychelles 53 6.10 57 5.49 Malaysia 54 6.09 54 5.76 Lebanon 55 6.04 64 5.34 Argentina 56 5.88 56 5.59 Serbia 57 5.82 46 6.24 Romania 58 5.81 55 5.61 Moldova 59 5.81 60 5.45 Oman 60 5.74 61 5.42 Trinidad & Tobago 61 5.67 58 5.46 Chile 62 5.65 62 5.40 TFYR Macedonia 63 5.65 59 5.45 Maldives 64 5.62 63 5.38 Costa Rica 65 5.53 69 4.95 Panama 66 5.51 66 5.06 Brazil 67 5.49 65 5.18 Ukraine 68 5.27 71 4.88 Saint Lucia 69 5.20 67 5.04 Azerbaijan 70 5.17 72 4.84 Mauritius 71 5.17 70 4.91 Turkey 72 5.11 68 5.01 Georgia 73 5.06 74 4.65 Jordan 74 4.95 76 4.53 Suriname 75 4.90 73 4.79 Bosnia and Herzegovina 76 4.83 75 4.58 Iran (I.R.) 77 4.68 77 4.53 Morocco 78 4.67 78 4.39 Armenia*The GNI per capita is based 79 4.52World Bank’s 79 Note: on the Atlas4.23 Method. Source: Source: ITU. ITU. 46 Economy China Colombia Ecuador Egypt Syria South Africa Venezuela Mexico Mongolia Viet Nam Thailand Tunisia El Salvador Jamaica Fiji Peru Albania Gabon Indonesia Paraguay Algeria Botswana Cape Verde Philippines Sri Lanka Dominican Rep. Bolivia Tonga Guyana Cambodia Namibia Honduras Nicaragua Kenya Bhutan Sudan Senegal Côte d'Ivoire Mauritania Pakistan Zimbabwe Lao P.D.R. India Mali Swaziland Gambia Ghana Uzbekistan Benin Lesotho Zambia Djibouti Yemen Bangladesh Solomon Islands Nigeria Congo Rwanda Uganda Cameroon Tanzania Burkina Faso Comoros Angola Liberia Malawi Guinea Mozambique Niger Ethiopia Myanmar Guinea-Bissau Madagascar Cuba Chad Congo (Dem. Rep.) Eritrea Central African Rep. Rank 2012 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Access 2012 4.36 4.35 4.34 4.20 4.20 4.14 4.13 4.11 4.04 4.04 4.00 3.95 3.95 3.93 3.86 3.85 3.73 3.67 3.62 3.60 3.60 3.58 3.46 3.41 3.36 3.35 3.27 3.25 3.18 3.14 3.09 3.05 2.99 2.73 2.68 2.62 2.59 2.58 2.58 2.56 2.54 2.53 2.50 2.44 2.43 2.42 2.40 2.38 2.36 2.26 2.12 2.11 2.09 2.03 2.02 1.99 1.99 1.96 1.95 1.87 1.87 1.87 1.87 1.83 1.80 1.72 1.71 1.69 1.65 1.64 1.62 1.49 1.48 1.45 1.40 1.33 1.23 1.12 Rank 2011 82 84 81 83 80 88 87 85 95 89 92 90 91 86 93 94 96 102 100 98 99 97 101 106 105 103 108 104 109 112 110 107 111 123 116 120 121 113 119 115 126 122 114 127 117 125 128 118 124 130 133 129 134 138 131 136 135 141 132 143 139 142 137 140 148 144 145 146 149 147 150 154 151 152 155 153 156 157 Access 2011 4.04 3.99 4.05 4.00 4.12 3.90 3.91 3.93 3.69 3.87 3.77 3.79 3.78 3.91 3.76 3.74 3.53 3.30 3.35 3.45 3.43 3.46 3.32 3.19 3.21 3.30 3.06 3.23 3.01 2.72 2.87 3.11 2.74 2.35 2.46 2.37 2.37 2.48 2.41 2.47 2.19 2.36 2.47 2.18 2.46 2.26 2.15 2.44 2.27 2.01 1.89 2.08 1.86 1.81 1.97 1.85 1.85 1.78 1.93 1.72 1.79 1.76 1.82 1.78 1.54 1.72 1.65 1.60 1.54 1.60 1.53 1.32 1.48 1.38 1.23 1.32 1.12 1.12 Measuring the Information Society 2013 Box 2.11: Kenya – largest amount of international Internet bandwidth per Internet user in Africa Kenya has made significant advances in its access sub-index, authorities decided to participate in the construction project which rose from 2.35 in 2011 to 2.73 in 2012. This allowed the for a submarine cable system. The East African Marine System country to climb ten places in the access sub-index rankings, (TEAMS), a public-private partnership (PPP) between the although it did not improve in the overall IDI ranking, where Kenyan Government and Etisalat, the United Arab Emirates it still stands in 116th position in 2012. Within the access incumbent telecommunication operator, went live in October sub-index, international Internet bandwidth per Internet user 2009 and links Kenya’s coastal town of Mombasa with the increased substantially in 2012, and Kenya has become the United Arab Emirates.73 However, TEAMS is not Kenya’s only country with the largest amount of international Internet source of international Internet bandwidth. Since 2009, bandwidth per Internet user in the Africa region (see Chart SEACOM, the Eastern Africa Submarine Cable System (EASSy) Box 2.11). and LION2 have all become operational. While the latter two are Prior to 2009, Kenya’s international Internet connectivity was dependent on satellite links. Understanding the importance run and operated by several international telecommunication companies, SEACOM is owned by private investors. of greater Internet capacity, the Kenyan Government has Following the success of TEAMS, another PPP was initiated to long advocated the landing of submarine cables on its expand the country’s national backbone network. Kenya’s open shores. Instead of relying on the private sector, the Kenyan Chart Box 2.11: International Internet bandwidth per Internet user, top five countries, Africa, 2011 and 2012 access National Optical Fibre Backbone Infrastructure (NOFBI) terrestrial network complements the country’s cable systems and brings bandwidth to the districts.74 With the landing of the fourth submarine cable system (LION2) in April 2012, the country was able to increase its capacity significantly. LION2 is an extension of the LION 30'000 Bit/s per user 25'000 2011 submarine cable system which connects countries bordering 2012 the Indian Ocean.75 Apart from boosting Kenya’s international Internet bandwidth capacity, the additional cable will provide redundancy in case of outages and thus guarantee network 20'000 stability and reliability. LION2 will also allow a greater quantity 15'000 of international Internet traffic to go through Kenya and 10'000 strengthen the country’s position as a regional communication 5'000 hub, according to Telekom Kenya, one of the shareholders.76 Data from the Communications Commission of Kenya (CCK) 0 Kenya South Africa Côte Seychelles Mauritius d'Ivoire Source: ITU World Telecommunication/ICT Indicators database. The economies that have made the most progress between 2011 and 2012 in terms of ICT access are all from the developing world (Table 2.7). Most of them are ranked in the upper and medium groups on the overall IDI, but the list also includes the high-income economy of the United Arab Emirates. The United Arab Emirates improved its ranking on the access sub-index by ten places by significantly increasing penetration rates for all the indicators making up the access shows that the total used bandwidth has increased during the course of 2012,77 driven mostly by the bandwidth capacity of submarine cables (CCK, 2012). sub-index. Both fixed- and mobile-cellular penetration increased, from 23 to 24 per cent and from 149 to 170 per cent, respectively, in 2012. The proportion of households with a computer and with Internet access increased from 77 to 85 per cent and from 67 to 72 per cent, respectively. The country’s international Internet bandwidth increased substantially, by almost 70 per cent, to 254 000 Mbit/s (Box 2.7). Kenya also improved its position by ten places, to 113th on the access sub-index in 2012, thanks primarily to a large 47 Chapter 2. The ICT Development Index (IDI) Table 2.7: Top ten economies with the greatest 2011-2012 change in the IDI access sub-index, by absolute value change (left) and rank change (right) IDI rank 2012 Access rank Country 2012 52 64 33 60 48 70 39 120 76 71 55 53 25 65 41 66 28 109 74 73 Lebanon Seychelles United Arab Emirates Costa Rica Kazakhstan Panama Bahrain Cambodia Jordan Georgia Access value change 2011-2012 0.70 0.62 0.58 0.57 0.45 0.45 0.44 0.43 0.42 0.41 IDI rank 2012 33 116 52 85 39 48 41 115 112 119 Access rank Country 2012 25 113 55 88 28 41 47 120 97 115 United Arab Emirates Kenya Lebanon Mongolia Bahrain Kazakhstan Belarus Zimbabwe Gabon Sudan Access rank change 2011-2012 10 10 9 7 6 6 6 6 5 5 Source: ITU. Box 2.12: Cambodia’s heated mobile market Cambodia registered one of the highest increases in the IDI carriers have been operating in recent years.78 In this competitive access sub-index between 2011 and 2012, improving its access environment, price wars have occurred over market shares, with sub-index value by 0.43 and moving up three places in the sub- operators trying to lure new customers by offering free SIM index rankings. It ranks 120th in the overall IDI in 2012, up one cards, high top-up bonuses for SMS, minutes and data, as well position from the year before. as cash prizes. The latest price war erupted in 2012 between the During this time period, mobile-cellular subscriptions went up mobile operators Smart and MobiTel. Both were offering very from 96 to 132 per 100 inhabitants. This represents a 37 per cent cheap prices and high top-up bonuses for calls, SMS and data. growth in mobile-cellular penetration, well above the global The country’s telecommunication regulator ended this latest and regional average (Chart Box 2.12). Cambodia has a highly price war, with reference to the 2009 proclamation, which set a competitive and fast-moving mobile market in which eight to ten minimum price per minute in order to ensure the sustainable development of the mobile market.79 Chart Box 2.12: Mobile-cellular telephone subscriptions, 2011 and 2012 Mobile communication has expanded rapidly and plays an important role in this least-developed country, where fixed telecommunication infrastructure is very limited. Fixed- 140 132 Per 100 inhabitants 120 100 telephone penetration in Cambodia stood at 4 per cent at end 2011 2012, compared to the Asia and the Pacific regional average of 2012 96 86 13 per cent and the developing-country average of 11 per cent. 91 77 80 83 Fixed (wired)-broadband penetration remains very low, at 0.20 per cent at end 2012. 60 Cambodia also made good progress on the use sub-index, 40 moving up eight places in the rankings. In 2012, the country 20 extended its mobile-broadband network, and increased wirelessbroadband penetration from 2 per cent in 2011 to 7 per cent in 0 Cambodia World Asia and the Pacific 2012. In 2013, Cambodia has finalized its National Broadband Policy, which – once implemented – will help foster broadband Source: ITU World Telecommunication/ICT Indicators database. 48 development in the country.80 Measuring the Information Society 2013 increase in international Internet bandwidth per Internet user, which jumped from 4 500 Mbit/s in 2011 to 24 000 Mbit/s in 2012. In terms of international Internet bandwidth Chart 2.7: Countries with a national broadband plan per Internet user, this makes Kenya the bandwidth-richest 140 133 country in Africa (Box 2.11). 123 120 bandwidth also took place in Lebanon, and between 2011 and 2012 Lebanon was the country with the highest value change on the access sub-index. The country, which has been highlighted for its achievements in terms of household access to ICTs, also improved its ranking, from 64th in 2011 to 55th in 2012.81 102 Number of countries A very sizeable expansion in international Internet 100 80 64 53 60 40 20 31 38 17 0 2005 2006 2007 2008 2009 2010 2011 2012 Cambodia and Sudan are the only countries from the group of LCCs that feature in the top ten economies Source: ITU World Telecommunication/ICT Regulatory Database. showing the greatest change in the IDI access sub-index between 2011 and 2012. In Cambodia, household access to ICTs remains low, but the number of mobile-cellular subscriptions increased to 132 per 100 inhabitants in 2012, from 96 a year earlier (Box 2.12). In Sudan, the number of households with a computer and with Internet access increased substantially, from 11 to 14 per cent and from 21 to 29 per cent, respectively. Increasing growth in fixed (wired)-broadband and particularly wireless-broadband penetration rates, however, is enabling many countries in the world to connect previously unconnected areas and bring more people online. Between 2011 and 2012, the total number of mobilebroadband subscriptions grew by 34 per cent globally, and Use sub-index by over 60 per cent in developing countries. A number of The use sub-index of the IDI measures the uptake of ICTs use sub-index significantly by virtue of very strong wireless- and the intensity of usage – indispensable for countries broadband growth rates between 2011 and 2012. In some to become information economies and societies. The use of these countries, such as Albania, Barbados and Lebanon, sub-index is composed of three indicators: Internet users 3G services were launched relatively recently and so wireless per 100 inhabitants, fixed (wired)-broadband subscriptions broadband is starting from low levels. In more and more per 100 inhabitants, and wireless-broadband subscriptions countries, governments are making broadband access per 100 inhabitants. to the Internet a policy priority and, according to recent countries were able to improve their rankings on the IDI ITU data, in early 2013 over 70 per cent of countries had a The number of Internet users worldwide is increasing national plan, strategy or policy already in place to promote steadily and ITU estimates that, by end 2013, there will be broadband, while another 7 per cent were planning to some 2.7 billion Internet users, representing a penetration introduce such measures in the near future (Chart 2.7). rate of 40 per cent. Many high-income economies have Internet penetration rates of over 80 per cent and in some The countries found at the top of the IDI use sub-index of them, including in Iceland, Norway and Denmark, over 90 correspond to a large extent to those ranking high on the per cent of people are online. In developing countries, fewer overall IDI. Sweden, the Republic of Korea and Iceland come people are able to benefit of the potential of the Internet first, second and third, respectively, and the top ten also and in some economies, including Pakistan, Rwanda and includes Japan and Australia (Table 2.8). Djibouti, fewer than one in ten people are online. In some of the world’s LCCs (see Box 2.9), Internet penetration rates The IDI use sub-index reveals important differences in remain insignificant. ICT use and intensity globally. Whereas the countries 49 Chapter 2. The ICT Development Index (IDI) Table 2.8: IDI use sub-index, 2011 and 2012 Economy Sweden Korea (Rep.) Denmark Norway Finland Japan Iceland Australia Netherlands Luxembourg Singapore United Kingdom Macao, China United States New Zealand Hong Kong, China France Switzerland Estonia Canada Ireland Germany Malta Austria Israel Qatar Belgium Spain Latvia United Arab Emirates Czech Republic Barbados Croatia Slovenia Italy Poland Slovakia Bahrain Greece Hungary Portugal Russian Federation Cyprus Bulgaria Belarus Oman Uruguay Antigua & Barbuda Lithuania Azerbaijan Kazakhstan TFYR Macedonia Chile Saudi Arabia Lebanon Serbia Brazil Romania Bosnia and Herzegovina Argentina Malaysia Costa Rica Trinidad & Tobago Georgia Albania China Mauritius Turkey Armenia Brunei Darussalam Seychelles Egypt Panama Saint Lucia South Africa Maldives Morocco St. Vincent and the Gr. Dominican Rep. Rank 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 Use 2012 8.25 8.22 8.15 8.05 8.05 7.51 7.50 7.46 7.32 7.29 7.25 7.19 6.88 6.76 6.72 6.62 6.60 6.54 6.52 6.38 6.08 6.05 6.04 5.97 5.86 5.79 5.75 5.52 5.45 5.18 5.17 5.00 4.99 4.94 4.89 4.84 4.79 4.75 4.65 4.48 4.45 4.34 4.23 4.20 4.13 4.07 3.84 3.77 3.76 3.72 3.71 3.67 3.67 3.67 3.54 3.52 3.41 3.34 3.19 3.16 3.11 3.06 2.83 2.82 2.71 2.70 2.69 2.63 2.60 2.53 2.52 2.51 2.46 2.39 2.35 2.32 2.28 2.27 2.27 Rank 2011 2 1 3 4 5 6 10 12 9 8 7 13 11 14 17 18 16 15 24 19 20 21 25 23 27 22 26 29 30 40 28 44 32 33 34 31 35 41 36 37 39 42 38 45 52 54 51 43 46 53 47 49 55 48 63 50 59 58 56 60 57 68 61 64 74 69 76 66 70 62 71 67 65 72 81 77 75 73 84 Use 2011 8.16 8.17 7.78 7.67 7.51 7.49 6.96 6.66 6.99 7.07 7.12 6.46 6.71 6.43 6.09 6.02 6.11 6.24 5.45 5.84 5.81 5.76 5.17 5.56 5.02 5.70 5.07 4.96 4.78 3.93 5.02 3.64 4.63 4.61 4.60 4.75 4.42 3.92 4.17 4.17 4.00 3.91 4.00 3.64 3.17 2.99 3.19 3.76 3.58 3.07 3.37 3.22 2.98 3.28 2.37 3.20 2.69 2.78 2.90 2.69 2.85 2.24 2.56 2.35 2.15 2.24 2.12 2.30 2.21 2.39 2.18 2.25 2.34 2.17 1.89 2.02 2.13 2.15 1.77 Note: *The GNI per capita is based on the World Bank’s Atlas Method. Source: Source: ITU. ITU. 50 Economy Moldova Colombia Mexico Viet Nam Ecuador Cape Verde Venezuela Fiji Uzbekistan Jordan Jamaica Tunisia Ukraine Nigeria Ghana Mongolia Indonesia Peru Zimbabwe Namibia Suriname Philippines Bolivia Guyana Sudan El Salvador Tonga Thailand Paraguay Kenya Iran (I.R.) Swaziland Bhutan Botswana Syria Sri Lanka Cuba Honduras Senegal Uganda Algeria India Angola Yemen Nicaragua Tanzania Lesotho Zambia Solomon Islands Lao P.D.R. Gambia Cambodia Pakistan Rwanda Djibouti Mauritania Gabon Congo Malawi Bangladesh Mozambique Comoros Cameroon Benin Burkina Faso Liberia Central African Rep. Guinea-Bissau Mali Côte d'Ivoire Chad Madagascar Niger Ethiopia Congo (Dem. Rep.) Guinea Myanmar Eritrea Rank 2012 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Use 2012 2.27 2.26 2.23 2.22 2.22 2.12 2.00 1.99 1.95 1.92 1.84 1.82 1.76 1.72 1.71 1.64 1.64 1.63 1.59 1.55 1.49 1.46 1.42 1.36 1.26 1.25 1.24 1.23 1.17 1.15 1.14 1.11 1.05 1.00 0.97 0.87 0.86 0.81 0.80 0.75 0.68 0.65 0.62 0.62 0.58 0.49 0.48 0.48 0.47 0.46 0.46 0.41 0.38 0.38 0.37 0.32 0.30 0.28 0.26 0.24 0.23 0.20 0.19 0.14 0.13 0.13 0.10 0.10 0.10 0.09 0.08 0.07 0.07 0.07 0.06 0.05 0.04 0.03 Rank 2011 80 82 79 78 87 93 83 88 86 89 90 85 91 95 96 100 98 92 105 102 94 99 103 97 101 108 109 104 106 107 110 118 111 114 112 116 113 117 115 121 119 124 120 122 123 126 125 127 130 129 128 139 131 135 133 132 134 137 136 138 141 140 142 143 144 145 149 146 148 147 150 151 152 153 155 154 156 157 Use 2011 1.94 1.86 1.97 2.01 1.63 1.39 1.82 1.60 1.65 1.55 1.51 1.67 1.49 1.29 1.25 1.17 1.21 1.47 1.03 1.14 1.33 1.18 1.13 1.21 1.16 0.93 0.90 1.10 1.02 0.95 0.85 0.65 0.83 0.70 0.81 0.67 0.78 0.66 0.68 0.53 0.62 0.46 0.55 0.52 0.46 0.44 0.45 0.40 0.35 0.36 0.38 0.19 0.34 0.27 0.30 0.33 0.28 0.20 0.21 0.20 0.18 0.18 0.17 0.13 0.10 0.10 0.07 0.09 0.08 0.09 0.07 0.07 0.06 0.05 0.04 0.04 0.03 0.02 Measuring the Information Society 2013 Table 2.9: Top ten economies with the greatest 2011-2012 change in IDI use sub-index, by absolute value change (left) and rank change (right) IDI rank 2012 Use rank 2012 68 90 63 58 65 85 41 87 53 106 92 110 78 70 80 95 45 100 60 120 Use value change 2011-2012 Ukraine 2.89 Iran (I.R.) 2.76 St. Vincent and the Gr. 2.57 Brunei Darussalam 2.54 Moldova 2.52 Mongolia 2.42 Belarus 2.40 Suriname 2.40 Argentina 2.38 Algeria 2.36 Country IDI rank 2012 Use rank 2012 29 33 72 80 52 120 54 96 41 117 32 30 67 65 55 131 46 85 45 111 Country Barbados United Arab Emirates Mauritius Albania Lebanon Cambodia Oman Cape Verde Belarus Swaziland Use rank change 2011-2012 12 10 9 9 8 8 8 8 7 7 Source: ITU. with the highest levels of ICT use have reached IDI values made significant strides in spreading high-speed wireless approaching 9 (out of a maximum of 10), the countries services. In the UAE, wireless-broadband penetration with the weakest ICT use levels (Niger and the Central increased from 22 to 51 per cent within one year (see African Republic) have IDI values of only one, or less. In both Box 2.7). these countries, broadband Internet access is extremely limited and the number of fixed (wired)-broadband and Lebanon was singled out in the 2012 MIS report for its wireless-broadband subscriptions insignificant. Indeed, strong growth in the IDI access sub-index, but lagged in 2012 the Central African Republic reported that fixed behind in terms of ICT use. Since then, this has changed, (wired)-broadband services had been suspended and that and the country has also succeeded in making impressive WiMAX was the only operational broadband service in progress on the use sub-index. The relatively late launch the country, which also suffers from a lack of international (in October 2011) of 3G mobile-broadband services by the Internet bandwidth.82 operators MTC Touch and Alfa has quickly driven broadband All of the countries that have made the most progress between 2011 and 2012 in terms of ICT use are developing countries (Table 2.9), most of them with upper and medium IDI values. Cambodia, which has also made significant progress in terms of ICT access, is the only country with a low IDI value. The country increased its wireless-broadband penetration from 2 per cent in 2011 to 7 per cent in 2012. Over the same period, Internet penetration rose from 3 per cent to 5 per cent (see Box 2.12). uptake and Internet user growth. Internet connectivity was also improved through a big increase in the number of fixed-broadband subscriptions, from 210 000 in 2011 to half a million at end 2012, by which time over 60 per cent of the population were using the Internet (up from 52 per cent in 2011). Both Mauritius and Albania gained nine places in the IDI use sub-index rankings, thanks especially to strong growth in the number of wireless-broadband subscriptions. In Barbados and the United Arab Emirates – both countries Mauritius, wireless broadband penetration grew by 73 per with high IDI values – made the greatest progress in terms cent, to 22 per 100 inhabitants in 2012. In Albania, where of their ranking on the IDI use sub-index. Between 2011 and a growing number of mobile operators are competing 2012, they moved up 12 and 10 positions in the rankings, for customers and expanding the 3G network, wireless- respectively. While both countries made only small progress broadband penetration grew by 109 per cent, to 18 per in terms of their fixed (wired)-broadband penetration, both cent in 2012 (Box 2.13). 51 Chapter 2. The ICT Development Index (IDI) Box 2.13: Growth in broadband networks brings more Albanians online Albania climbed nine places in the IDI use sub-index rankings, (wired) broadband – where the country saw the highest 2011- with an increase in its use sub-index value of almost twice the 2012 growth rate in Europe – has helped to bring Internet access global average (0.32), from 2.15 in 2011 to 2.71 in 2012. Growth to an increasing number of Albanian households. Between 2011 in the access sub-index was not strong enough to improve and 2012, the proportion of households with Internet access is the country’s overall ranking in the IDI, however, and Albania estimated to have increased from 17 per cent to 21 per cent. continues to occupy 80th position globally. The number of Albanians using the Internet is on the rise as Albania’s wireless-broadband penetration doubled, from 9 per well. With an increase in the percentage of individuals using the cent in 2011 to 18 per cent in 2012. Mobile broadband was first Internet of around 12 per cent – from 49 per cent in 2011 to 55 per launched in the country in 2010 by Vodafone Albania. A second cent in 2012 – Albania has seen one of the highest Internet user licence was issued to the mobile operator AMC in November growth rates in the Europe region. However, the country remains 2011 (MITIC, 2012). Mobile-broadband network coverage below the regional European average (71 per cent), and still has expanded quite rapidly: by April 2012, AMC had already achieved one of the lowest Internet user penetration rates in the region 95 per cent population coverage, while Vodafone’s 3G network after Turkey (45 per cent), Serbia (48 per cent) and Romania (50 covered 99 per cent of the country’s population.83 Both operators per cent) (Chart Box 2.13). A number of policies exist to foster ICT offer 3G to prepaid and postpaid customers and for use on development in the country and further increase Internet user a computer or handset, and services are relatively affordable penetration. Albania’s broadband strategy85 aims at improving (see Chapter 3). Two additional mobile-broadband licences broadband infrastructure, increasing competition in the sector, were auctioned off in 2012, and Eagle Mobile is set to launch lowering prices and improving the quality of services. Furthermore, 3G services in 2013, thus further increasing competition in the the Albanian Government aims to increase the number of public market. The expansion of wireless broadband as well as fixed services, including e-government, offered online.86 84 Chart Box 2.13: Individuals using the Internet, Europe, 2011 and 2012 2011 2012 Ice No land r Sw wa y e D Ne en den th ma Lu er rk xe lan m ds Un b ite F our d inl g K a Sw ing nd itz do m Geerla rm nd Fr any Be anc lg e Au ium Slo stri v a Es akia to Cz ec Ir nia h ela Re n pu d b La lic tv I ia Hu sra ng el a Sp ry Bo a sn M in ia al S l an o ta d Lit ven He h ia rz uan eg ia ov TF Po ina YR P la M ort nd ac ug ed al o Cr nia oa Cy tia pr u I s Gr taly Bu eec lg e Al aria b Ro an m ia a Se nia r Tu bia rk ey Per 100 inhabitants 100 90 80 70 60 50 40 30 20 10 0 Source: ITU World Telecommunication/ICT Indicators database. Another country that has made good progress on the use sub-index is Oman, which went up eight places, to 46th, in 2012. Early launch of 3G mobile-broadband services has 52 driven broadband competition and increased wirelessbroadband penetration from 39 per cent in 2011 to a high of 58 per cent in 2012 (see Box 2.6). Measuring the Information Society 2013 Skills sub-index 2.5Regional IDI analysis The three indicators included in the skills sub-index of the IDI are: adult literacy rate, gross secondary enrolment ratio, and gross tertiary enrolment ratio. These indicators are used as proxy indicators to help capture each country’s level of human capacity and its population’s ability to make use of ICTs, in the absence of more targeted indicators such as ICT literacy. Therefore, the skills sub-index is weighted less in the calculation of the IDI and makes up 20 per cent of the overall IDI, as compared with 40 per cent for each of the two other sub-indices. The regional analysis of the IDI provides insights into Skills sub-index values change only very gradually, in particular in developed countries where very high levels of literacy and enrolment have already been achieved. Furthermore, data are not always available for the latest year. Thus, 2011 and 2012 sub-index values are identical for most countries (see Table 2.10). Nevertheless, the skills sub-index provides a good indication of the overall level of human capacity in a country. This is important because, in addition to ICT infrastructure, education and skills are necessary for making effective use of ICTs and building a competitive and inclusive information society. the six regions.87 Countries from the Europe region generally have a high IDI, and the region boasts by far the highest regional average IDI of 6.73. The CIS region follows, with the second highest regional IDI of 4.95, followed by the Americas (4.45) and Asia and the Pacific (4.37). The Arab States regional IDI, at 3.94, is slightly below the global average of 4.35. Africa has the lowest regional IDI of 2.0, which is just half that of the Arab States average and less than one-third of the European regional average (see Chart 2.8). An analysis of the IDI range (calculated by subtracting the lowest IDI value in the region from the highest value) and the coefficient of variation88 (which describes the dispersion of a variable) for each region gauges differences in ICT development within each region (see Table 2.11). Asia and the Pacific displays the largest disparities in ICT development. The region contains both the Republic of Korea, the country with the highest IDI 2012 value, and countries with very low IDI levels, such as Bangladesh and Chart 2.8: IDI ranges and averages, by region, 2012 9 8 7 6 Regional average IDI 2012 differences in ICT development within and between each of 5 World average (4.35) 4 Range 3 2 1 0 Europe CIS The Americas Asia & Pacific Arab States Africa Note: Simple averages. Source: ITU. 53 Chapter 2. The ICT Development Index (IDI) Table 2.10: IDI skills sub-index, 2011 and 2012 Rank Skills Rank Skills Economy 2012 2012 2011 2011 Korea (Rep.) 1 9.86 1 9.86 Finland 2 9.80 2 9.80 United States 3 9.65 3 9.65 Greece 4 9.55 4 9.55 Belarus 5 9.48 5 9.48 Slovenia 6 9.44 6 9.44 New Zealand 7 9.38 7 9.38 Spain 8 9.34 8 9.34 Australia 9 9.29 9 9.29 Iceland 10 9.24 10 9.24 Ukraine 11 9.17 11 9.17 Norway 12 9.10 12 9.10 Denmark 13 9.08 13 9.08 Cuba 14 9.00 14 9.00 Sweden 15 9.00 15 9.00 Belgium 16 8.98 16 8.98 Poland 17 8.96 17 8.96 Lithuania 18 8.92 18 8.92 Austria 19 8.92 19 8.92 Ireland 20 8.89 20 8.89 Canada 21 8.85 21 8.85 Netherlands 22 8.80 22 8.80 Russian Federation 23 8.80 23 8.80 Estonia 24 8.79 24 8.79 Italy 25 8.79 25 8.79 Argentina 26 8.75 26 8.75 Israel 27 8.71 27 8.71 Portugal 28 8.69 28 8.69 Barbados 29 8.69 29 8.69 Chile 30 8.64 30 8.64 Macao, China 31 8.63 31 8.63 Hungary 32 8.62 32 8.62 United Kingdom 33 8.62 33 8.62 Japan 34 8.62 34 8.62 Venezuela 35 8.56 35 8.56 France 36 8.55 36 8.55 Czech Republic 37 8.48 37 8.48 8.45 Romania 38 8.45 38 39 8.42 Latvia 39 8.42 Uruguay 40 8.38 40 8.38 Switzerland 41 8.37 41 8.37 Croatia 42 8.28 42 8.28 Fiji 43 8.24 43 8.24 Mongolia 44 8.23 44 8.23 Germany 45 8.17 45 8.17 Slovakia 46 8.13 46 8.13 Bulgaria 47 8.13 47 8.13 Kazakhstan 48 8.09 49 8.00 Armenia 49 8.01 48 8.01 Serbia 50 7.99 50 7.99 Hong Kong, China 51 7.98 51 7.98 Costa Rica 52 7.97 52 7.97 Cyprus 53 7.94 53 7.94 Colombia 54 7.79 54 7.79 Turkey 55 7.71 55 7.71 Lebanon 56 7.68 56 7.68 Albania 57 7.65 57 7.65 Saudi Arabia 58 7.60 58 7.60 Malta 59 7.58 59 7.58 Moldova 60 7.53 60 7.53 Bosnia and Herzegovina 61 7.51 61 7.51 Bahrain 62 7.47 62 7.47 Peru 63 7.45 63 7.45 Jordan 64 7.35 64 7.35 TFYR Macedonia 65 7.31 66 7.31 Iran (I.R.) 66 7.30 67 7.30 Ecuador 67 7.29 68 7.29 Azerbaijan 68 7.28 69 7.28 Thailand 69 7.26 65 7.34 St. Vincent and the Gr. 70 7.23 70 7.23 Luxembourg 71 7.23 71 7.23 Brazil 72 7.19 72 7.19 Georgia 73 7.19 73 7.19 Oman 74 7.18 74 7.18 Tonga 75 7.17 75 7.17 Brunei Darussalam 76 7.16 76 7.16 Singapore 77 7.12 77 7.12 7.11 Antigua & Barbuda 78 7.11 78 Panama *The GNI per capita is based 79 7.11World Bank’s 79 Note: on the Atlas7.11 Method. Source: Source: ITU. ITU. 54 Economy Mexico United Arab Emirates Mauritius Bolivia Saint Lucia Tunisia Philippines Uzbekistan Qatar Jamaica Sri Lanka Algeria Malaysia China Maldives South Africa Dominican Rep. Trinidad & Tobago Indonesia Paraguay Cape Verde Viet Nam Seychelles Suriname Guyana Honduras El Salvador Botswana Egypt Syria Nicaragua Myanmar Gabon Swaziland Morocco Namibia Solomon Islands India Ghana Bhutan Kenya Lao P.D.R. Cameroon Cambodia Comoros Zimbabwe Lesotho Bangladesh Yemen Djibouti Sudan Congo (Dem. Rep.) Congo Uganda Zambia Gambia Rwanda Tanzania Nigeria Angola Eritrea Senegal Madagascar Pakistan Malawi Côte d'Ivoire Guinea-Bissau Liberia Benin Mauritania Ethiopia Mozambique Guinea Mali Central African Rep. Chad Burkina Faso Niger Rank 2012 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Skills 2012 7.09 7.08 7.07 7.02 6.98 6.95 6.94 6.94 6.92 6.85 6.84 6.82 6.81 6.77 6.77 6.75 6.67 6.67 6.61 6.54 6.50 6.49 6.47 6.40 6.34 5.99 5.88 5.82 5.80 5.77 5.56 5.39 5.13 5.12 5.03 4.98 4.88 4.79 4.76 4.56 4.54 4.53 4.50 4.42 4.38 4.35 4.28 4.10 4.04 3.90 3.88 3.80 3.78 3.69 3.64 3.64 3.61 3.56 3.51 3.51 3.46 3.32 3.32 3.27 3.21 3.16 3.13 3.07 3.02 3.01 2.80 2.71 2.64 2.63 2.59 2.10 1.91 1.51 Rank 2011 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 109 108 110 111 112 113 115 114 116 117 118 123 119 120 121 122 124 125 126 127 128 131 129 130 132 133 134 135 136 140 137 138 139 141 142 143 144 145 146 147 148 149 150 151 153 152 154 155 156 157 Skills 2011 7.09 7.08 7.07 7.02 6.98 6.95 6.94 6.94 6.92 6.85 6.84 6.82 6.81 6.77 6.77 6.75 6.67 6.67 6.61 6.54 6.50 6.49 6.47 6.40 6.34 5.99 5.88 5.82 5.74 5.77 5.56 5.39 5.13 5.12 4.93 4.98 4.88 4.79 4.72 4.38 4.54 4.53 4.50 4.42 4.38 4.35 4.28 4.10 4.04 3.80 3.88 3.80 3.78 3.69 3.64 3.64 3.61 3.38 3.51 3.51 3.46 3.32 3.32 3.27 3.21 3.16 3.13 3.07 3.02 3.01 2.80 2.73 2.61 2.63 2.59 2.10 1.84 1.49 Measuring the Information Society 2013 Myanmar. As a result, it has by far the highest range (6.84), progress in ICT development, and four out of the regional but also the highest coefficient of variation (51.83), which top six – Bahrain, Lebanon, Oman and the United Arab underlines that there is an important divide in terms of Emirates – are among the most dynamic countries in the ICT development between the highest and lowest ranked IDI 2012. Of the countries that rank further down in regional countries. The stark differences in ICT development reflect comparison, Yemen moved up two places in the IDI rankings the region’s diversity in terms of development and income between 2001 and 2012, to 127th. Syria and Comoros, on levels. Nevertheless, it is very encouraging that Asia and the the other hand, made little progress and dropped four and Pacific registered the largest decrease in the coefficient of three places, respectively. variation (-1.76) from 2011 to 2012, which suggests that the In the CIS region, the coefficient of variation is much lower regional digital divide is narrowing. The range also decreased – the second lowest globally after Europe – although it slightly, and both the highest ranked country (Republic increased slightly from 2011 to 2012. Yet there is a quite a of Korea) and lowest ranked country (Bangladesh) in the divide in terms of ICT development between countries such region progressed. as the Russian Federation, Belarus and Kazakhstan, which feature in the global top 50, and, for example, Uzbekistan, The picture is very different in Africa, the region with the which comes in 104th position in the IDI 2012. second highest coefficient of variation (46.98). Between 2011 and 2012, Africa was the region where the CV value In the Americas region, the coefficient of variation increased the most, implying a widening of the regional decreased very slightly. The region is quite diverse and digital divide. The region’s top IDI countries (including includes, on the one hand, the United States and Canada, Seychelles, Mauritius, South Africa and Cape Verde) continue which are high-income, developed countries, and, on the to make good progress in terms of ICT development, other, the developing countries in Latin American and the while the countries at the bottom (including Central Africa Caribbean. In the IDI 2012, a number of Latin American Republic, Burkina Faso, Guinea and Ethiopia) are failing and Caribbean countries stand out for having significantly to keep pace both regionally and globally. This is also improved their IDI value, including Barbados, Brazil and confirmed by an increase in the regional range. Costa Rica, which are among the most dynamic countries in the IDI 2012. The regional range and the coefficient of variation increased in both the Arab States and CIS regions between 2011 and Europe is not only the region with the highest average IDI, 2012. A number of countries from the Arab States region at 6.73; it is also the most homogeneous. Furthermore, both with relatively high IDI values continue to make great the range and coefficient of variation continued to decrease Table 2.11: IDI by region, 2011 and 2012 Range StDev CV Max. Min. Range Average value* StDev CV Range Average value* CV Difference 2011-2012 Min. IDI 2011 Max. Region Average value* IDI 2012 Europe 8.45 4.11 4.34 6.73 1.14 16.89 8.41 3.80 4.61 6.51 1.14 17.49 -0.27 0.22 -0.61 CIS 6.19 3.12 3.07 4.95 0.96 19.40 5.94 3.02 2.91 4.65 0.88 18.96 0.16 0.31 0.45 The Americas 7.53 2.54 4.99 4.45 1.33 29.87 7.35 2.39 4.96 4.22 1.26 29.91 0.03 0.22 -0.04 Asia & Pacific 8.57 1.73 6.84 4.37 2.26 51.83 8.51 1.62 6.89 4.20 2.25 53.59 -0.05 0.17 -1.76 Arab States 6.54 1.70 4.84 3.94 1.74 44.08 6.41 1.68 4.74 3.68 1.58 42.82 0.10 0.26 1.25 Africa 4.75 0.99 3.75 2.00 0.94 46.98 4.36 0.93 3.43 1.87 0.85 45.22 0.33 0.13 1.76 Note: * Simple average. StDev: Standard deviation; CV: Coefficient of variation. Source: ITU. 55 Chapter 2. The ICT Development Index (IDI) Table 2.12: The top five economies in each region and their ranking in the global IDI, 2012 Regional IDI rank Europe Global IDI rank Asia & Pacific Global IDI rank The Americas Global IDI rank Arab States Global IDI rank CIS Global IDI rank Africa Global IDI rank 1 Sweden 2 Korea (Rep.) 1 United States 17 Qatar 31 Russian Federation 40 Seychelles 64 2 Iceland 3 Hong Kong, China 10 Canada 20 United Arab Emirates 33 Belarus 41 Mauritius 72 3 Denmark 4 Australia 11 Barbados 29 Bahrain 39 Kazakhstan 48 South Africa 84 4 Finland 5 Japan 12 Uruguay 47 Saudi Arabia 50 Azerbaijan 61 Cape Verde 96 6 Macao, China 14 Antigua & Barbuda 49 Lebanon 52 Moldova 65 Botswana 108 5 Norway Source: ITU. during the period 2011 to 2012, indicating a narrowing of Between 2011 and 2012, more African countries moved up the regional digital divide. than moved down the global rankings. Moreover, countries that lost ground in the global IDI fell by no more than two A comparison of the global and regional ranking of the places. However, the biggest gains were made by the top five countries in each region further highlights global region’s top ranked countries, and the regional digital divide differences in ICT development and regional divides (see actually widened between 2011 and 2012. The country Table 2.12). The European top five countries occupy an at the top of the regional rankings – Seychelles – saw almost identical global and regional ranking. In the CIS the highest increase in rank, from 70th in 2011 to 64th in and Arab States regions, the top five countries also rank 2012, which places the country among the most dynamic relatively close together, although their position globally is in the IDI 2012, together with Zambia and Zimbabwe. All somewhat lower compared with the European countries. three countries stand out for improvements in the access The top five in the Asia and the Pacific region rank closely sub-index. Zambia and Zimbabwe improved in particular together globally, with the Republic of Korea standing apart their mobile-cellular penetration, while the Seychelles as the global number one. In the Americas region, there is a recorded notable increases across all the indicators in the clear divide between the North American countries (United use sub-index. Zimbabwe also registered a high increase in States and Canada), which rank in the global top 20, and their wireless-broadband penetration between 2011 and 2012, Caribbean and Latin American neighbours. Africa’s regional and overtook both Kenya and Swaziland in the IDI ranking top five are the most diverse and lowest ranked globally. (see Table 2.13). The Seychelles ranks first in the region and 64th globally. Africa Seychelles and Mauritius are the top ranked countries in the Africa region. They are the only African countries with an IDI Mobile-cellular penetration continues to progress throughout the region, with eighteen countries recording double-digit growth rates from 2011 to 2012. There is, however, still some room for growth on this indicator, insofar as a mere eight African countries had achieved more than above the global average. The African regional IDI of 2.0 is 100 per cent mobile-cellular penetration by end 2012. by far the lowest of all regions, and apart from Seychelles Eritrea has the lowest penetration rate worldwide, at just 5 and Mauritius only South Africa and Cape Verde have IDI per cent at end 2012, and showed very little growth from values above the developing-country average. All remaining 2011 (see Chart 2.10). countries lie below that average and rank very low globally. The bottom nineteen countries in the IDI 2012 are all African The strongest growth in international Internet bandwidth per countries, with Niger in last position globally with an IDI of Internet user was recorded in Kenya, where the figure shot 0.99 (Chart 2.9). up from just 4 500 Mbit/s in 2011 to 24 000 Mbit/s in 2012. 56 Measuring the Information Society 2013 Chart 2.9: IDI values compared with the global, regional and developing/developed-country averages, Africa, 2012 7 Developed 6 5 World 4 IDI Developing 3 Africa 2 1 Se y M ch So au elle u r s Ca th A itius pe fr Bo Ve ica ts rd Na wane m a Ga ibia b Zim Gh on ba ana b Sw Ke we az ny i a Ni land g Se eri n a Le eg so al Ga th o Ugmb ia a n C Za d Cô am mb a e te ro ia d’ on Iv An oire g C ol Rwong a Ta an o nz da an Be ia ni n Co M Ma ng al li o (D L aw M em iber i oz . ia M am Re Gu ad biqp.) in aga ue ea s -B ca Et issa r hi u Guopi i a Bu Ce Er nea r k i nt in tre aF a ra lA fri C aso ca ha n d Re Ni p. ge r 0 Source: ITU. The country connected to the submarine cable system LION2 use sub-index that exceeded the global average increase in April 2012 (see Box 2.11). In the Seychelles, international (+0.32) from 2011 to 2012. Cape Verde’s use sub-index Internet bandwidth almost tripled with the landing of the value increased most, from 1.39 in 2011 to 2.12 in 2012, Seychelles East Africa System (SEAS) fibre-optic cable.90 At the which represents one of the highest increases worldwide. same time, in a number of other African countries, including The country greatly extended its wireless-broadband Botswana, Côte d’Ivoire and Ethiopia, international Internet penetration, reaching 22.5 per cent by end 2012. Progress bandwidth per Internet user has actually decreased, not in wireless broadband was also made in countries such 89 because there was a reduction in the international bandwidth, but because the number of Internet users increased faster than the amount of bandwidth. The percentage of households with Internet access is extremely low in Africa, with a regional average of just 5.3 per cent by end 2012, far short of the developingcountry average of 24 per cent. Furthermore, little progress can be seen from 2011 to 2012 in regard to the percentage of households with Internet access in the region. Most improvements took place in Seychelles and Mauritius, countries which already enjoyed a relatively high penetration of households with Internet access, and both as Ghana, Mauritius, Swaziland and Zimbabwe. At the same time, a large number of African countries were late to launch mobile-broadband networks and have yet to launch 3G high-speed services. Thus, wireless-broadband penetration is marginal in many countries, and more than half of African countries had a penetration of less than 2 per cent by end 2012. Fixed telecommunication infrastructure is underdeveloped on the continent and only the Seychelles (12 per cent) and Mauritius (10.5 per cent) have notable fixed (wired)broadband penetration rates. In the case of Seychelles, the reached 42 per cent by end 2012. fixed (wired)-broadband penetration is even somewhat A number of African countries, in particular those at the The two countries also have the highest percentage of top of the regional ranking, achieved increases in the individuals using the Internet: 47 per cent in Seychelles and higher than the wireless-broadband penetration rate. 57 Chapter 2. The ICT Development Index (IDI) Table 2.13: IDI – Africa Economy Regional rank 2012 Global rank 2012 IDI 2012 Global rank 2011 IDI 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 64 72 84 96 108 109 112 113 115 116 117 122 124 126 128 130 132 136 137 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 4.75 4.55 3.95 3.53 3.00 2.85 2.61 2.60 2.52 2.46 2.44 2.18 2.02 1.95 1.88 1.81 1.77 1.72 1.70 1.68 1.66 1.66 1.65 1.60 1.54 1.43 1.39 1.31 1.31 1.28 1.26 1.24 1.23 1.20 1.18 1.01 1.00 0.99 2.00 70 74 85 96 108 111 112 114 119 116 115 123 125 126 127 130 137 136 135 138 140 143 141 142 144 145 148 146 149 147 152 150 151 153 154 156 155 157 4.36 4.23 3.67 3.18 2.83 2.60 2.46 2.30 2.16 2.23 2.27 1.96 1.88 1.84 1.79 1.72 1.64 1.66 1.66 1.63 1.58 1.54 1.57 1.57 1.43 1.41 1.27 1.30 1.26 1.28 1.19 1.22 1.20 1.15 1.11 0.94 1.00 0.93 1.87 Seychelles Mauritius South Africa Cape Verde Botswana Namibia Gabon Ghana Zimbabwe Kenya Swaziland Nigeria Senegal Lesotho Gambia Uganda Zambia Cameroon Côte d'Ivoire Angola Congo Rwanda Tanzania Benin Mali Malawi Liberia Congo (Dem. Rep.) Mozambique Madagascar Guinea-Bissau Ethiopia Guinea Eritrea Burkina Faso Chad Central African Rep. Niger Average* Global rank change 2011-2012 6 2 1 0 0 2 0 1 4 0 -2 1 1 0 -1 0 5 0 -2 -1 0 2 -1 -1 0 0 2 -1 1 -2 2 -1 -1 0 0 1 -1 0 Note: *Simple average. Source: ITU. 41 per cent in Mauritius. Cape Verde (35 per cent), Nigeria (33 per cent), Kenya (32 per cent) and South Africa (41 per Arab States cent) also stand out for having a relatively high proportion The Arab States regional ranking closely reflects income of individuals using the Internet, well above the developing- disparities in the region. Qatar tops the regional ranking, country average (27.5 per cent) at end 2012. South Africa has with an IDI of 6.54, followed by the United Arab Emirates seen the highest increase in the proportion of individuals and Bahrain. Together with Saudi Arabia, Lebanon and using the Internet in the region, from 34 per cent in 2011 Oman, these countries boast a higher IDI than the global to 41 per cent in 2012. In other African countries, only a average of 4.35. The countries ranked at the bottom of the very small proportion of the population is online. In Eritrea, 2012 regional IDI, namely Yemen, Djibouti, Mauritania and Ethiopia, Guinea and Niger, for instance, penetration stood Comoros, with IDI values of less than two, even lie far below at around 1 per cent by end 2012. the developing-country average (see Chart 2.11). 58 Measuring the Information Society 2013 Chart 2.10: Mobile-cellular telephone subscriptions, Africa, 2011 and 2012 200 180 2011 Per 100 inhabitants 160 2012 140 120 100 80 60 40 20 Se Gab yc o B h n So ots elle ut w s h an M Afr a au ica Na ritiu m s i Co bia ng Z Gh o Cô imb an te ab a d’ we Ivo i Be re ni n M Ca Sen al pe eg i V al Ga erde m Za bia m Gu in Ke bia ea n -B ya is Ni sau Sw ge r Ca azil ia m and e Le roon s Bu Ta oth rk nza o in n a F ia Lib aso Rw eri an a An da Ug gola a M G nda ad u ag ina as M ca o za Ch r Co m ng bi ad o qu (D em Ni e g . R er Ce nt M ep.) ra a l A Et law fri hio i ca p n ia R Er ep. itr ea 0 Source: ITU World Telecommunication/ICT Indicators database. A number of countries from the Arab States region with countries in the IDI 2012 (see section 2.2 and Boxes 2.6 relatively high IDI values – Bahrain, Lebanon, Oman and and 2.7). Within the region, the United Arab Emirates, in the United Arab Emirates – are among the most dynamic particular, is making good progress and catching up with Chart 2.11: IDI values compared with the global, regional and developing/developed-country averages, Arab States, 2012 7 Developed 6 5 World 4 Arab States Developing IDI 3 2 1 ia Al ge ria Su da n Ye m en Dj ib ou M ti au rit an i Co a m or os Sy r hr ai n ud iA ra bi Le a ba no n Om an Jo rd an Eg yp t M or oc co Tu ni sia Sa Ba UA E 0 Qa ta r Source: ITU. 59 Chapter 2. The ICT Development Index (IDI) Qatar, the region’s number one: between 2011 and 2012, the penetration rates by a mere 10 per cent each between 2011 United Arab Emirates was able to reduce the difference in and 2012, from 29 per cent to 32 per cent and from 21 per IDI value between itself and Qatar from 0.73 to 0.13, and by cent to 23 per cent, respectively; and in Syria, penetration 2012 the two Gulf countries rank very close – only two places even decreased slightly, from 63 per cent in 2011 to 61 per apart – in the global IDI. Lebanon also made substantial cent in 2012. progress and overtook Oman in the regional and global IDI rankings. Most Arab countries with lower IDI values were A number of countries from the region achieved sizeable unable to improve their IDI value to any significant extent, increases in international Internet connectivity. Morocco and are falling behind in international comparison. Comoros’ more than doubled its available bandwidth with the IDI barely improved, from 1.68 in 2011 to 1.70 in 2012, with landing of the submarine cable Loukkos.91 The Gulf Bridge the result that the country lost four places in the global IDI International (GBI) cable system went live in February 2012, ranking. Djibouti and Mauritania only slightly increased their adding more international Internet bandwidth in Bahrain, IDI value, and were thus unable to improve their global IDI Oman, Qatar, Saudi Arabia and the United Arab Emirates. ranking, while Algeria, Sudan and Syria fell in the rankings Bahrain and Qatar attained the highest proportion of between 2011 and 2012 (see Table 2.14). households with a computer in the region, at above 90 per In the access sub-index, the region records generally high cent. Qatar also has the highest percentage of households mobile-cellular penetration rates. No fewer than 11 out with Internet access region-wide, at 88 per cent. On the of 17 Arab States have achieved more than 100 per cent other hand, differences in household connectivity across mobile-cellular penetration by end 2012. However, while the region are quite pronounced, and few households penetration increased significantly in a number of countries are connected to the Internet in Comoros (3 per cent), that already had very high penetration rates in 2011, Mauritania (3 per cent) and Yemen (5 per cent). In these including Bahrain, Jordan and the United Arab Emirates, very countries, the number of households with a computer little progress was made in the countries with the lowest is also very low, and little progress has been made from rates. Comoros and Djibouti increased their mobile-cellular 2011 to 2012. At the same time, it is encouraging to see Table 2.14: IDI – Arab States Economy Qatar United Arab Emirates Bahrain Saudi Arabia Lebanon Oman Jordan Egypt Morocco Tunisia Syria Algeria Sudan Yemen Djibouti Mauritania Comoros Average* Note: *Simple average. Source: ITU. 60 Regional rank 2012 Global rank 2012 IDI 2012 Global rank 2011 IDI 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 31 33 39 50 52 54 76 86 89 91 102 106 119 127 131 133 138 6.54 6.41 6.30 5.69 5.37 5.36 4.22 3.85 3.79 3.70 3.22 3.07 2.33 1.89 1.77 1.76 1.70 3.94 30 45 42 48 61 58 77 87 89 92 99 105 118 129 131 133 134 6.41 5.68 5.79 5.46 4.62 4.80 3.90 3.65 3.59 3.58 3.13 2.98 2.19 1.76 1.71 1.70 1.68 3.68 Global rank change 2011-2012 -1 12 3 -2 9 4 1 1 0 1 -3 -1 -1 2 0 0 -4 Measuring the Information Society 2013 that Jordan and Morocco, countries with a percentage of The proportion of the population using the Internet varies households with Internet access around the global average considerably throughout the Arab States region. With more (37.4 per cent), registered considerable increases. Sudan and than 85 per cent of the population using the Internet in Tunisia, although still below the global average penetration, Bahrain, Qatar and the United Arab Emirates, these countries managed to increase the proportion of households with are doing well, globally. On the other hand, Internet user Internet access to 29 per cent and 21 per cent, respectively, penetration in Mauritania and Comoros is around just 5 per by end 2012. cent. Algeria (15 per cent), Djibouti (8 per cent), Sudan (21 per cent), Syria (24 per cent) and Yemen (17 per cent) remain In line with the global trend, wireless broadband is the below the global average of 35.7 per cent. The country most dynamic indicator within the use sub-index in the registering the highest increase in the number of Internet Arab States. While most of the growth in terms of wireless users in the region is Oman, where penetration grew by 25 subscriptions stems from active mobile-broadband per cent, from 48 per cent in 2011 to 60 per cent in 2012. subscriptions (using the 3G mobile-broadband network), In Djibouti, Jordan, Lebanon, Mauritania and Yemen, the a number of countries in the Arab States region, including proportion of individuals using the Internet increased by Jordan and Bahrain, have extended WiMAX networks to more than 15 per cent (see Chart 2.12). provide additional connectivity. Considerable increases in wireless-broadband penetration were observed in Lebanon Asia and the Pacific and the United Arab Emirates, where the rate more than doubled, to 26 per cent and 51 per cent, respectively. The regional digital divide is very pronounced in the Asia and Tunisia and Jordan also doubled their wireless-broadband the Pacific region. The region is home to some of the IDI’s penetration, although at a much lower level, to achieve 5 front runners, including the global number one, the Republic per cent and 12 per cent, respectively. Oman stands out of Korea. Other economies with high IDI values, above the in particular: the country further improved its wireless- global (4.35) and the developed-country (6.78) averages, broadband penetration from 39 per cent in 2011 to 58 per include Hong Kong (China), Australia, Japan, Macao (China), cent in 2012, a rate comparable to that of many of the IDI Singapore and New Zealand. This group of economies top performers. At the same time, no wireless-broadband clearly stands apart from the rest of the Asia and the Pacific services exist in three Arab States, namely Algeria, Comoros region, and the gap between the regional number seven and Djibouti, and penetration is marginal (below 2 per cent) (New Zealand, with an IDI of 7.64) and number eight (Brunei in Syria and Yemen. Darussalam with an IDI of 5.06) is striking. While Brunei Darussalam, Malaysia and the Maldives still have IDI values Fixed (wired)-broadband penetration is traditionally low in above the global average, the remaining Asia and the Pacific the region, with an average penetration of 2.6 per cent by countries do not. The gap in IDI values becomes even more end 2012, the second lowest regional average just ahead of severe at the bottom of the regional ranking: 12 countries Africa. With the exception of Lebanon, where fixed (wired)- have IDI values below the developing-country average of broadband penetration more than doubled, from 5 per 3.44. Solomon Islands, Pakistan, Myanmar and Bangladesh cent in 2011 to 12 per cent in 2012, no important increases have the lowest IDI values in the region, and rank very low in penetration were registered between 2011 and 2012. globally (see Chart 2.13). A number of countries, including Bahrain, Jordan, Qatar and Tunisia, even saw their number of subscriptions per Three countries from the Asia and the Pacific region – 100 inhabitants decrease very slightly. In some cases, for Australia, Bangladesh and Mongolia – are among the most example in Bahrain, an increase in the number of WiMAX dynamic in the 2012 IDI. Australia’s IDI value increased subscriptions seems to suggest that terrestrial fixed-wireless thanks mostly to advances in the use sub-index, in broadband is a substitute to fixed (wired)-broadband. particular in regard to wireless-broadband penetration, and Bahrain has the highest fixed-broadband penetration in the the country was able to overtake Japan in the IDI ranking region, at 13 per cent, which is only somewhat higher than (see Box 2.4). Bangladesh made most progress in the access the global average (9 per cent). sub-index, in particular with regard to mobile-cellular 61 Chapter 2. The ICT Development Index (IDI) Chart 2.12: Individuals using the Internet, Arab States, 2011 and 2012 100 90 Per 100 inhabitants 80 70 2011 60 2012 50 40 30 20 10 0 Source: ITU World Telecommunication/ICT Indicators database. Chart 2.13: IDI values compared with the global, regional and developing/developed-country averages, Asia and the Pacific, 2012 9 8 7 Developed 6 IDI 5 World Asia & Pacific 4 Developing 3 2 1 Ho Ko ng rea Ko (R ng ep , C .) Au hin st a ra M ac Ja lia ao pa , n S Ch Br N inga ina un ew po ei Ze re Da a ru lan ss d a M lam al M ays al ia di ve Ch s in a M F on iji Vi gol et ia Ira Nam n Th (I.R. ) In aila do nd Ph ne ilip sia pi ne To s Sr ng iL a an Bh ka Ca ut m an bo d So L In ia lo ao di m P a on .D Isl .R. a Pa nds k M ista Ba yan n ng ma la r de sh 0 Source: ITU. penetration and international Internet connectivity. Nonetheless, Bangladesh still remains at the bottom of the regional ranking and in 135th position globally. Mongolia, 62 on the other hand, moved up five places in the global IDI between 2011 and 2012, overtaking both Viet Nam and the Islamic Republic of Iran. Measuring the Information Society 2013 A comparison of the global rankings in 2011 and 2012 shows Cambodia is the country registering the highest increase that the majority of Asia and the Pacific countries are falling in the access sub-index regionally, and indeed improved behind in international comparison (i.e. losing at least one well above the global average (0.18). An increase in mobile- place in comparison with the previous year). Japan, which cellular penetration, the second highest in the region, saw one of the lowest increases in use sub-index value in is mostly responsible for this improvement. Penetration 2012, lost four places compared to 2011. Countries that fell increased by 37 per cent, reaching 132 per cent by end 2012. two places in 2012 compared to the previous year include On the other hand, some of the countries with the lowest Brunei Darussalam, the Islamic Republic of Iran and Viet penetration, most notably India and the Islamic Republic of Nam (see Table 2.15). Iran, added very few new mobile-cellular subscriptions in 2012 (see Chart 2.14). While the Asia and the Pacific region’s relative performance in relation to other regions has been lower, all countries in The proportion of households with Internet access is highest the region increased their absolute IDI values between 2011 globally in the Republic of Korea (97 per cent), followed and 2012. The region’s developing countries improved mostly by New Zealand (87 per cent) and Japan (86 per cent). A in the access sub-index, while the high-income developed number of developing countries saw significant increases in countries generally progressed most on the indicators household Internet connectivity, and hence average growth included in the use sub-index. This reflects the three stages of in the access sub-index. The proportion of households with the conceptual framework upon which the IDI has been built. Internet access improved by more than 21 per cent in China. Table 2.15: IDI – Asia and the Pacific Economy Korea (Rep.) Hong Kong, China Australia Japan Macao, China Singapore New Zealand Brunei Darussalam Malaysia Maldives China Fiji Mongolia Viet Nam Iran (I.R.) Thailand Indonesia Philippines Tonga Sri Lanka Bhutan Cambodia India Lao P.D.R. Solomon Islands Pakistan Myanmar Bangladesh Average* Regional rank 2012 Global rank 2012 IDI 2012 Global rank 2011 IDI 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 10 11 12 14 15 16 58 59 73 78 82 85 88 90 95 97 98 101 107 118 120 121 123 125 129 134 135 8.57 7.92 7.90 7.82 7.65 7.65 7.64 5.06 5.04 4.53 4.18 3.99 3.92 3.80 3.79 3.54 3.43 3.34 3.23 3.06 2.40 2.30 2.21 2.10 1.97 1.83 1.74 1.73 4.37 1 10 15 8 13 14 18 56 57 71 79 81 90 86 88 94 97 98 101 107 117 121 120 122 124 128 132 139 8.51 7.66 7.54 7.77 7.57 7.55 7.31 4.93 4.81 4.31 3.86 3.79 3.59 3.65 3.61 3.42 3.14 3.14 3.09 2.92 2.19 2.05 2.13 1.99 1.91 1.78 1.70 1.62 4.20 Global rank change 2011-2012 0 0 4 -4 -1 -1 2 -2 -2 -2 1 -1 5 -2 -2 -1 0 0 0 0 -1 1 -1 -1 -1 -1 -2 4 Note: *Simple average. Source: ITU. 63 Chapter 2. The ICT Development Index (IDI) Chart 2.14: Mobile-cellular telephone subscriptions, Asia and the Pacific, 2011 and 2012 > 200% 2011 200 2012 180 Per 100 inhabitants 160 140 120 100 80 60 40 20 M Ho aca ng o, Ko Ch ng ina ,C M hina al d Sin ive ga s p Vi ore et N M am al Ca ays m ia bo Th dia ai M lan on d Br g un In olil ei do a Da ne ru sia Ko ssa re lam Ne a (R w ep Ze .) al an d J a Ph p ilip an p Au ines st La rali o a D. P.R . Sr Fij iL i an ka Ch Ira ina n (I. R Bh .) ut an In d Pa ia Ba kis ng tan la de So sh lo T m o on ng Is a M land ya s nm ar 0 Source: ITU World Telecommunication/ICT Indicators database. With this increase, China has reached the global average of of Korea (38 per cent) and Singapore (26 per cent). Fixed 37.4 per cent. (wired)-broadband penetration is generally low in the region’s developing countries. China is an exception, with Wireless broadband is the most dynamic indicator in the a fixed (wired)-broadband penetration of 13 per cent. This use sub-index, but there are large disparities in terms of represents a total of close to 176 million subscriptions at penetration and growth rates throughout the region. A end 2012, over 20 million more than in 2011. China also has number of countries from the Asia and the Pacific region a large number of fibre connections, and ranks relatively still do not have a commercially available 3G network by high globally in terms of its fibre-to-the-home/building end 2012, including Bangladesh, Islamic Republic of Iran, Pakistan, Tonga and Thailand. In those countries, satellite broadband and fixed (wireless)-broadband subscriptions, in particular WiMAX, were the main wireless-broadband technologies available. The highest increase took place in countries with a well-developed mobile-broadband market and high penetration rates, such as Macao (China), Australia and Hong Kong (China). Indonesia attained a wireless-broadband penetration of 32 per cent, above penetration (close to 5 per cent in mid-2012)93 Apart from China, only Malaysia (8 per cent), Maldives (5.5 per cent) and Thailand (6 per cent) have a fixed-broadband penetration above the developing-country average of 5 per cent by end 2012. Commonwealth of Independent States (CIS) the global average of 22 per cent: 3G was launched in The Commonwealth of Independent States (CIS) regional Indonesia as early as 200692 and services there are among ranking is headed by the Russian Federation, with an IDI the most affordable in the region (see Chapter 3). of 6.19, just ahead of Belarus (6.11) and Kazakhstan (5.74). Belarus is among the most dynamic countries of the IDI, and Asia and the Pacific countries with a well-developed ICT is closing the gap with respect to the Russian Federation. infrastructure display high levels of fixed (wired)-broadband Uzbekistan ranks last with an IDI of 3.12, which is by far penetration. These include, for instance, Hong Kong (China) the lowest IDI value in the region (Table 2.16). While all CIS (31.5 per cent), New Zealand (28 per cent), the Republic countries – with the exception of Uzbekistan – have an IDI 64 Measuring the Information Society 2013 above the world average, all the countries in the region sub-index, with a number of countries, including Belarus, remain below the developed-country average (see Chart Georgia, Kazakhstan, Moldova and Ukraine, increasing their 2.15). The CIS region is the region showing the strongest value by at least twice the global average. improvement in regional IDI value from 2011 to 2012, with the regional IDI climbing from 4.65 in 2011 to 4.95 By end 2012, mobile-cellular penetration exceeded 100 per in 2012. This is the second highest regional IDI after the cent in all CIS countries except Uzbekistan. The CIS region has Europe region (6.73). All CIS countries, with the exception by far the highest mobile-cellular penetration (158.9 per cent) of Uzbekistan, display above-average increases in IDI value. of all regions. Such high mobile-cellular penetration is partly In particular, major improvements can be seen in the access explained by the high proportion of prepaid subscriptions Table 2.16: IDI – CIS Economy Russian Federation Belarus Kazakhstan Azerbaijan Moldova Ukraine Georgia Armenia Uzbekistan Average* Regional rank 2012 Global rank 2012 IDI 2012 Global rank 2011 IDI 2011 1 2 3 4 5 6 7 8 9 40 41 48 61 65 68 71 74 104 6.19 6.11 5.74 5.01 4.74 4.64 4.59 4.45 3.12 4.95 38 46 49 60 67 69 73 75 104 5.94 5.57 5.41 4.62 4.46 4.38 4.24 4.18 3.02 4.65 Global rank change 2011-2012 -2 5 1 -1 2 1 2 1 0 Note: *Simple average. Source: ITU. Chart 2.15: IDI values compared with the global, regional and developing/developed-country averages, CIS, 2012 7 Developed 6 5 CIS World 4 IDI Developing 3 2 1 0 Source: ITU. 65 Chapter 2. The ICT Development Index (IDI) Chart 2.16: Households with Internet access, CIS, 2011 and 2012 60 2011 50 Per 100 households 2012 40 30 20 10 0 Source: ITU World Telecommunication/ICT Indicators database. in the region, and the use of several SIM cards by single in particular Ukraine and Belarus. In Ukraine, the proportion subscribers in order to avoid paying high off-net prices. As of households with Internet access rose from 29 per cent noted by the Ukrainian regulator, “the number of mobile in 2011 to 37 per cent in 2012; in Belarus, the proportion subscriptions is higher than the population in the country. increased from 40 per cent in 2011 to 48 per cent in 2012 This situation refers to the fact that one person has several (see Chart 2.16). SIM-cards of different operators. However, there are still the residents having no mobile phone in Ukraine, mainly they Significant progress was also registered on the use sub-index are children and seniors. One of the main reasons of buying between 2011 and 2012, and all CIS countries apart from several SIM-cards is the substantial difference between the Uzbekistan and Ukraine saw above-average increases in tariffs for on-net calls and off-net calls. This led to the fact that their use sub-index value. The highest increase occurred in nearly 94% of mobile outgoing traffic falls on on-net calls” Belarus, which added 0.96 value points to reach a use sub- (NCCIR, 2013). The usual regulatory remedy applied to prevent index value of 4.13 in 2012, the second highest in the region high off-net prices becoming a barrier to competition is the after the Russian Federation (4.34). Wireless-broadband regulation of mobile termination rates (MTRs). Lower MTRs penetration is high in a number of CIS countries, including help reduce off-net call prices and promote competition in in the Russian Federation (53 per cent) and Kazakhstan mobile markets, as has been proven in the European Union, (42 per cent). Increases in wireless-broadband penetration where MTRs are clearly regulated in all Member States. were smaller in most CIS countries compared with other 94 regions. Important advances in penetration were made in The Russian Federation and Kazakhstan have both achieved Belarus, where penetration grew by over 70 per cent and 50 per cent of households with Internet access by end 2012. increased from 19 per cent in 2011 to 33 per cent in 2012. However, household Internet connectivity varies quite a In Azerbaijan and Moldova, wireless broadband penetration lot throughout the region. The proportion of households grew by 42 per cent, to 34 per cent and 5 per cent in 2012, with Internet access is still fairly low in Uzbekistan (10 respectively. Moldova, together with Ukraine, remains per cent) and Armenia (25 per cent). A number of CIS one of the countries with the lowest wireless-broadband countries have seen significant increases on this indicator, penetration in the CIS region. 66 Measuring the Information Society 2013 Fixed (wired)-broadband penetration in the CIS is well had overtaken Ireland, Malta and Belgium. With most above the global and developing-country average. Belarus countries in the region already having achieved a very high has by far the highest fixed (wired)-broadband penetration level of ICT development, there was very little movement in the region. In both Moldova and Ukraine, fixed (wired)- in the upper half of the European ranking (see Table 2.17). broadband plays an important role, and penetration stands at 12 per cent and 8 per cent, respectively. The situation is In the lower half of the European ranking, the majority of the very different in Uzbekistan, where fixed (wired)-broadband countries lost ground in the global IDI. Poland and Serbia penetration is less than 1 per cent (although it shows the each fell a full five places. Serbia regressed in the global highest growth rate region-wide, at 36 per cent), while IDI on account of below-average increases in its access wireless-broadband penetration is relatively high, at 21 per sub-index. In these countries, no major improvements cent at end 2012. were registered on the indicators included in the access Europe Europe boasts the highest regional IDI of 6.73, and a generally high level of ICT development. All European countries, with the exception of Albania, have an IDI value above the global average (4.35), and about half have an IDI above the sub-index, and fixed-telephone penetration is declining. In Serbia, which lost five places from 2011 to 2012 and is the only country globally whose IDI value has actually dropped, fixed-telephone penetration went down from 37 per cent in 2011 to 30 per cent in 2012, and mobile-cellular penetration decreased from 125 per cent to 93 per cent in the same developed-country average (6.78) (see Chart 2.17). period. However, it should be noted that there is a break in Eight European countries rank within the top ten of the subscriptions for Serbia, since in 2012 the regulator enforced IDI 2012. The southern and eastern European countries the activity criterion for all prepaid subscriptions. Data from rank lowest. Estonia and Israel improved their IDI values before 2012 effectively included non-active mobile-cellular significantly from 2011 to 2012, and in the IDI 2012 Estonia subscriptions. Chart 2.17: IDI values compared with the global, regional and developing/developed-country averages, Europe, 2012 9 8 7 Developed Europe IDI 6 5 4 World Developing 3 2 1 0 Sw e I de Decela n nm nd Fin ar k Un Ne No land ite the rw d r ay Lu Kin land xe gd s Sw mb om itz ou er rg l F an Ge ran d rm ce Au an y Es stria to n Ire ia la M nd Be al lgi ta u Isr m ae SloSpa l ve in ni Cz ec G Ita a h re ly Re e pu ce b L li Po atv c rtu ia Po ga l Cr land Hu oat n ia Sl ga Lit ova ry hu kia Cy ania Bu pru Bo Ro lga s sn TF m ria ia YR an M S ani d a er a He ce b rz do ia eg ni ov a Tu ina Al rke ba y ni a comparability in the 2011 to 2012 data on mobile-cellular Source: ITU. 67 Chapter 2. The ICT Development Index (IDI) Table 2.17: IDI – Europe Economy Sweden Iceland Denmark Finland Norway Netherlands United Kingdom Luxembourg Switzerland France Germany Austria Estonia Ireland Malta Belgium Israel Spain Slovenia Italy Greece Czech Republic Latvia Portugal Poland Croatia Hungary Slovakia Lithuania Cyprus Bulgaria Romania Serbia TFYR Macedonia Bosnia and Herzegovina Turkey Albania Average* Regional rank 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Global rank 2012 2 3 4 5 6 7 8 9 13 18 19 21 22 23 24 25 26 27 28 30 32 34 35 36 37 38 42 43 44 45 46 55 56 57 67 69 80 IDI 2012 8.45 8.36 8.35 8.24 8.13 8.00 7.98 7.93 7.78 7.53 7.46 7.36 7.28 7.25 7.25 7.16 7.11 6.89 6.76 6.57 6.45 6.40 6.36 6.32 6.31 6.31 6.10 6.05 5.88 5.86 5.83 5.35 5.34 5.19 4.71 4.64 4.11 6.73 Global rank 2011 2 4 3 5 6 7 11 9 12 19 17 21 25 22 24 23 26 27 28 29 33 31 37 35 32 34 39 40 41 43 47 54 51 55 64 66 80 IDI 2011 8.41 8.12 8.18 7.99 7.97 7.85 7.63 7.76 7.62 7.26 7.33 7.10 6.74 7.10 6.85 6.85 6.70 6.65 6.60 6.43 6.21 6.30 6.00 6.07 6.22 6.14 5.91 5.85 5.79 5.71 5.50 5.05 5.38 4.93 4.49 4.47 3.80 6.51 Global rank change 2011-2012 0 1 -1 0 0 0 3 0 -1 1 -2 0 3 -1 0 -2 0 0 0 -1 1 -3 2 -1 -5 -4 -3 -3 -3 -2 1 -1 -5 -2 -3 -3 0 Note: *Simple average. Source: ITU. Bosnia and Herzegovina, the Czech Republic and Poland Most countries in the region already possess a very well- managed only very small (and below-average) increases developed ICT infrastructure, and increases in the access in their use sub-index, and have thus lost ground in global sub-index are thus less dynamic. European countries with comparison between 2011 and 2012. In all three countries, strong growth in the access sub-index are for the most wireless-broadband penetration – the most dynamic part those at the bottom of the regional ranking, such as indicator globally – progressed little. In both the Czech Albania, Bulgaria, Bosnia and Herzegovina, Romania and Republic and Poland, wireless-broadband penetration TFYR Macedonia, all of which made significant progress has stood at around 50 per cent since 2011. In Bosnia and with regard to ICT household connectivity. Bosnia and Herzegovina, wireless-broadband penetration has grown Herzegovina logged the highest absolute increase, from only marginally, from 11 to 12 per cent between 2011 and 32 per cent of households with Internet access at end 2012 (Chart 2.18). 2011 to 40 per cent at end 2012. Romania registered a 12 68 Measuring the Information Society 2013 Chart 2.18: Wireless-broadband subscriptions, Europe, 2011 and 2012 110 100 90 80 70 60 50 40 30 20 10 0 2011 2012 Fin Sw land De ede nm n No ark rw Un Lux Est ay ite em oni d bo a Ki u ng rg d Ice om l Ire and la nd Ne th Isra er el la n M ds Au alta st r La ia tv Sp ia Cr ain o Cz ec Po atia h la Re n pu d Fr blic an ce It Sw Gr aly itz eec er e Bu lan d Ge lgar rm ia a Se ny Slo rbi a Slo vak ve ia Cy nia Be pru l s Po gium rtu Hu ga TF YR R nga l M om ry ac an ed ia o Bo Al nia sn ba ia an T nia d Li urk He th ey r z ua eg ni ov a in a Per 100 inhabitants Source: ITU World Telecommunication/ICT Indicators database. per cent increase in the proportion of households with stagnated since 2011, in Albania 3G was launched only in a computer, up from 51 per cent in 2011 to 57 per cent January 201195 and penetration is on the rise. In comparison in 2012. The top-ranked European countries have a very with other European countries, Turkey was relatively late in high proportion of households with a computer and with launching mobile-broadband services, in mid-2009,96 and Internet access. In the Netherlands, virtually all households continues to improve its wireless-broadband penetration have a computer (97 per cent) and Iceland has the second (see Chart 2.18). highest proportion of households with Internet access globally, at 96 per cent. At the same time, the European Fixed (wired)-broadband penetration is already at a high Union’s Digital Agenda aims at bringing fast broadband (> level – the regional average of 25.8 per cent is by far the 30 Mbit/s) to all, and achieving 50 per cent of households highest of all regions, with the result that penetration with superfast broadband (> 100 Mbit/s) subscriptions by has registered relatively small increases throughout the 2020. This will be achieved through increased investments region, with growth rates below 10 per cent. Albania had in broadband (including EU financing as well as funding the highest annual growth rate of 24 per cent but fixed- from national and private sources), increased competition broadband penetration remained just below five per cent between broadband providers and regulatory initiatives (see Box 2.13). TFYR Macedonia and Poland – where fixed (see Box 2.3). (wired)-broadband penetration reached 15 per cent and 17 per cent, respectively, in 2012 – registered double-digit Wireless broadband is the indicator showing the highest growth rates (of 16 and 13 per cent, respectively) between growth rates across the European region. Penetration is 2011 and 2012. highest in Finland (107 per cent) and Sweden (101 per cent), both very mature mobile markets, where wireless In almost half of the Europe region countries, over 75 per broadband was launched early on. Albania (18 per cent), cent of the population was using the Internet by end 2012. Turkey (16 per cent), Bosnia and Herzegovina (12 per cent) To have 75 per cent of the population using the Internet and Lithuania (12 per cent) have the lowest penetration rates regularly is one of the goals of Europe’s Digital Agenda to in Europe. While penetration in the latter two countries has be achieved by 2015 (see Box 2.3). It is a promising trend 69 Chapter 2. The ICT Development Index (IDI) that those countries that are still below the target added and the former two also stand out for improvements in the highest proportion of Internet users in 2012: penetration their IDI ranking. increased, for example, by 11 per cent in TFYR Macedonia, from 57 per cent in 2011 to 63 per cent in 2012. Other Of the countries in the Americas region, Antigua and countries displaying strong growth rates above 10 per cent Barbuda saw the highest decrease in global ranking, include Portugal (11 per cent), Romania (14 per cent) and from 44th in 2011 to 49th in 2012, having achieved only a Serbia (14 per cent). marginal increase in both the access and the use sub-indices. The Americas The America’s regional IDI ranking is headed by the United States (7.53) and Canada (7.38), the only two developed countries in the Americas region. Both have IDI values well above the developed-country average of 6.78. Just over half of the countries in the region have an IDI value below the global average of 4.35. Nicaragua ranks last regionally and 114th globally, with an IDI of 2.54 (Chart 2.19). The country’s use sub-index in particular showed very little progress, with an increase in value of just 0.01, one of the lowest worldwide. Trinidad and Tobago lost three places in relation to 2011, also on account of very little growth in the use sub-index. Neither of these two countries are keeping up with the rapid increase in wireless-broadband penetration globally and across the Americas region. This is also the case in Suriname and Paraguay, as well as Saint Vincent and the Grenadines and Saint Lucia. The latter both remained without a mobile-broadband network in 2012, and are thus The Americas region is quite dynamic (both upwards and falling behind in international comparison (see Table 2.18). downwards), with almost all countries changing positions in the global rankings between 2011 and 2012. Only four Colombia, Costa Rica, Paraguay and Venezuela achieved countries (Argentina, Brazil, Canada and Jamaica) have the more than 100 per cent mobile-cellular penetration in same ranking in the IDI 2012 as in 2011. Barbados, Costa 2012, bringing the total number of countries with more Rica and Brazil have significantly increased their IDI values, subscriptions than population in the region to 17. The highest Chart 2.19: IDI values compared with the global, regional and developing/developed-country averages, the Americas, 2012 8 7 Developed 6 IDI 5 4 The Americas World Developing 3 2 1 Un ite d St at Ca es n Ba ad An rb a tig a ua Ur do & ugu s Ba ay rb ud a C Ar hil ge e St Co nti .V sta na in Ri ce ca Tr nt in an Bra id d zi ad th l & eG To . b Pa ago na St ma . Co Luc lo ia Ve m ne bia z Ec uela ua d M or ex Su ic rin o am e Pe Do r J m am u in a ica ic n a Re p B El o . Sa liv lv ia Pa ado ra r g Gu uay y Ho an nd a ur as Ni Cub ca a ra gu a 0 Source: ITU. 70 Measuring the Information Society 2013 increase occurred in Costa Rica, where penetration went up Brazilian operators.97 Colombia’s Vive Digital aims to connect from 92 per cent in 2011 to 128 per cent by end 2012, after 50 per cent of the country’s households to the Internet the liberalization of the country’s mobile market in 2011. With by 2014. One of the key infrastructure projects under this this increase in mobile-cellular penetration and impressive initiative is the establishment of a national fibre-optic improvements in the proportion of households with Internet network under a public-private partnership.98 access, Costa Rica is among the countries which made most In line with the global trend, it is wireless-broadband progress in the access sub-index (see Box 2.5). penetration that has seen the strongest growth rates in Further countries that secured strong increases in their the region. Several countries registered a growth of more access sub-index values include Argentina, Brazil, Colombia than 100 per cent between 2011 and 2012. These include and Panama, which improved significantly in ICT household Barbados, which launched mobile only in late 201199 and connectivity and in particular increased the percentage achieved a penetration of 37 per cent by end 2012. In of households with Internet access (see Chart 2.20). Both Bolivia, Ecuador and the Dominican Republic, networks and Brazil and Colombia have plans in place that aim to bring coverage were further expanded and penetration reached affordable broadband to more households. The goal 7 per cent, 23 per cent and 16 per cent, respectively, by of Brazil’s Programa Nacional de Banda Larga is to bring end 2012.100 In Costa Rica, competition intensified with the broadband access to 40 million of the country’s households entry of new operators, and wireless-broadband penetration by 2014, in particular in rural areas, in cooperation with climbed to 28 per cent by end 2012.101 Table 2.18: IDI – The Americas Economy United States Canada Barbados Uruguay Antigua & Barbuda Chile Argentina Costa Rica Brazil St. Vincent and the Grenadines Trinidad & Tobago Panama Saint Lucia Colombia Venezuela Ecuador Mexico Suriname Peru Jamaica Dominican Rep. Bolivia El Salvador Paraguay Guyana Honduras Cuba Nicaragua Average* Regional rank 2012 Global rank 2012 IDI 2012 Global rank 2011 IDI 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 17 20 29 47 49 51 53 60 62 63 66 70 75 77 79 81 83 87 92 93 94 99 100 103 105 110 111 114 7.53 7.38 6.65 5.76 5.74 5.46 5.36 5.03 5.00 4.81 4.73 4.61 4.43 4.20 4.17 4.08 3.95 3.84 3.68 3.68 3.58 3.28 3.25 3.21 3.08 2.74 2.72 2.54 4.45 16 20 36 50 44 52 53 65 62 59 63 68 72 78 76 83 82 84 91 93 95 102 103 100 106 109 110 113 7.35 7.14 6.01 5.38 5.70 5.08 5.06 4.47 4.59 4.71 4.54 4.38 4.28 3.89 4.00 3.73 3.78 3.73 3.58 3.54 3.36 3.08 3.06 3.10 2.96 2.70 2.66 2.39 4.22 Global rank change 2011-2012 -1 0 7 3 -5 1 0 5 0 -4 -3 -2 -3 1 -3 2 -1 -3 -1 0 1 3 3 -3 1 -1 -1 -1 Note: *Simple average. Source: ITU. 71 Chapter 2. The ICT Development Index (IDI) Chart 2.20: Households with Internet access, the Americas, 2011 and 2012 90 Per 100 households 80 2011 70 2012 60 50 40 30 20 10 Sa in tV in ce nt an d th e G. 0 Source: ITU World Telecommunication/ICT Indicators database. A number of countries had a higher fixed (wired)- per cent). Both countries also have the highest proportion broadband than wireless-broadband penetration, of individuals using the Internet regionally: 87 per cent of including Colombia, Venezuela and Peru. While Saint Lucia Canadians were using the Internet by end 2012, as against and Saint Vincent and the Grenadines do not (yet) have a 81 per cent of people in the United States. Antigua and 3G network, their fixed (wired)-broadband penetration is Barbuda (84 per cent) and Barbados (73 per cent) likewise relatively high, at 14 per cent and 12 per cent, respectively. had a relatively high proportion of the population using the Internet. El Salvador (26 per cent) and Nicaragua By far the highest fixed (wired)-broadband penetration (14 per cent) have seen the highest increases in the rates are found in the region’s developed countries, number of Internet users, with over 25 per cent growth namely Canada (33 per cent) and the United States (28 since 2011. 72 Measuring the Information Society 2013 Endnotes This section is based on the 2012 edition of Measuring the Information Society. The presentation of the conceptual framework and methodology of the IDI is maintained in each version of the report, to help the reader. The reader is also advised to consult the 2009 edition of Measuring the Information Society, which provides more information on the development of the IDI concept and methodology. Annex 1 to this report describes the methodology in more detail. 1 Data on the indicators included in the skills sub-index are sourced from the UNESCO Institute for Statistics (UIS). See Annex 1 for more details on the definition of the indicators. 2 For more information on the EGTI online forum see: http://www.itu.int/ITU-D/ict/ExpertGroup/default_group.asp. 3 To join EGTI, visit: http://www.itu.int/ITU-D/ict/ExpertGroup/default.asp. 4 To join EGH, visit: http://www.itu.int/net4/ITU-D/forum/expertgrouponhouseholds/forum/. 5 In this context, the recommendations made by experts in relation to the development of the single index were taken into consideration. Between 2007 and 2008, ITU maintained an online discussion forum with more than 100 participants on the preparation of the “single index”. 6 The revision was part of the overall review of ITU’s infrastructure indicators, and was carried out through its Expert Group on Telecommunication/ICT Indicators (EGTI). The definition adopted by ITU is in line with the OECD definition of wireless broadband. Active mobile-broadband subscriptions include (a) standard mobile subscriptions with use of data communications at broadband speeds (i.e. mobile-cellular subscriptions with advertised data speeds of 256 kbit/s or greater and which have been used to set up an Internet data connection) and (b) dedicated mobile data subscriptions at broadband speeds (i.e. subscriptions to dedicated data services over a mobile network which are purchased separately from voice services, either as a standalone service – e.g. using a data card such as a USB modem/dongle – or as an add-on data package to voice services requiring an additional subscription). For more information, see http://www.itu.int/ITU-D/ict/handbook.html. 7 By end 2012, Japan and Singapore also had mobile-broadband penetration rates above 100 per cent. 8 See OECD Broadband portal, at http://www.oecd.org/sti/broadband/oecdbroadbandportal.htm and KISA, 2012. 9 See http://europa.eu/rapid/press-release_STAT-12-185_en.htm. 10 See http://www.pts.se/en-gb/News/Press-releases/2012/Half-of-households-and-businesses-in-Sweden-can-get-fast-broadband/. 11 See http://www.lightreading.com/ip-convergence/teliasonera-first-to-go-live-with-lte/240111802. 12 See http://www.hkcsl.com/en/pdf/2012/SKT_CSL_LTE_roaming_launch_ENG.pdf. 13 See http://www.pfs.is/upload/files/M7_Final_decision_Jan2012.pdf for Iceland and http://www.pts.se/en-GB/Industry/Telephony/SMP---Marketreviews/ and http://www.telegeography.com/products/commsupdate/articles/2013/06/18/pts-issues-smp-decisions-on-mobile-terminationleased-lines-markets/?utm_source=CommsUpdate&utm_campaign=247fe6a1ea-CommsUpdate+18+June+2013&utm_medium=email&utm_ term=0_0688983330-247fe6a1ea-8868625 for Sweden. 14 See http://media.ofcom.org.uk/2012/06/18/boosting-business-telecoms-to-meet-growing-demand-for-data/. 15 See http://speedtest.ofca.gov.hk/index.html. 16 See https://ec.europa.eu/digital-agenda/telecoms-rules. 17 See https://ec.europa.eu/digital-agenda/node/641. 18 See information by country: http://ec.europa.eu/digital-agenda/en/progress-country. 19 See http://ec.europa.eu/digital-agenda/en/single-telecom-market-growth-jobs. 20 See http://www.tra.org.bh/en/pdf/I_LoveMyNumberCampaign_pressreleaseFinal_en.pdf and http://www.ilovemynumber.bh/. 21 See http://www.tra.org.bh/EN/pdf/2012TelecommunicationsmarketsindicatorsvFforpublic.pdf. 22 See http://www.bh.zain.com/ZainPortal/Bahrain_News1_ar.jsp and http://www.telegeography.com/products/commsupdate/articles/2011/04/12/zain-bahrain-upgrades-wimax-network/. 23 See http://www.btrc.gov.bd/jdownloads/Licensing%20Guidelines/btrc_license_summary_06-03-2013_.pdf. 24 See http://lirneasia.net/2013/01/graphic-evidence-of-consequences-of-not-paying-attention-to-redundancy-bangladeshs-internationalconnectivity/. 25 See http://www.digicelbarbados.com/en/about/news/digicels-4g-network-goes-live and http://www.telegeography.com/products/commsupdate/articles/2011/11/25/digicel-barbados-launches-hspa-/index.html. 26 See http://4g.digicelbarbados.com/en/pricing and http://www.time4lime.com/4G/bb/get-4g/plans.jsp. 27 See http://www.mpt.gov.by/en/content/1928.22Mobile-broadbandsubscriptionsincludeGPRS. 28 See http://www.telegeography.com/products/commsupdate/articles/2013/01/29/mts-belarus-reports-1-5m-mobile-internet-subscribers-in-2012/. 29 See http://www.mc.gov.br/acoes-e-programas/programa-nacional-de-banda-larga-pnbl/252-temas/programa-nacional-de-banda-largapnbl/23723-termos-de-compromisso. 30 See http://www.mc.gov.br/acoes-e-programas/programa-nacional-de-banda-larga-pnbl. 31 See http://www.teleco.com.br/3g_cobertura.asp. 32 73 Chapter 2. The ICT Development Index (IDI) See http://www.americamovil.com/amx/cm/reports/Q/1Q12EN.pdf. 33 See http://www.telegeography.com/products/commsupdate/articles/2013/01/25/sutel-to-choose-firm-for-mnp/?utm_ source=CommsUpdate&utm_campaign=d99ad5b718-CommsUpdate+25+January+2013&utm_medium=email. 34 See Soiela, 2013. 35 See http://estonia.eu/about-estonia/economy-a-it/e-estonia.html. 36 See http://point-topic.com/press-and-events/2012/estonia-a-leader-in-mobile-and-superfast-broadband/. 37 See http://www.ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta. 38 See http://www.telecomsinsight.com/file/92741/costa-rica-telecoms-ready-to-reach-potential.html, http://www.telegeography.com/products/commsupdate/articles/2005/10/03/ice-gsm-lines-face-further-delays/ and http://www.telegeography.com/products/commsupdate/articles/2005/06/16/first-come-first-served-in-queue-for-ice/. 39 See http://www.bnamericas.com/news/privatization/market-liberalization-has-positive-effect-on-mobile-penetration-levels-sutel. 40 See http://www.grupoice.com/wps/portal/gice/acerca_ice/acerca_ice_asi_somos/acerca_ice_asi_somos_historia/!ut/p/c5/04_ SB8K8xLLM9MSSzPy8xBz9CP0os_gQL0N_D2cLEwN_Vy8XA08zY09TUzNTi1BnI6B8JJK8QYClK1De1dcyyMzVwMDAhBjdBjiAowE3SbGaHajyBsEGJuQ5HJM0_Hr9vPIz03VL8gNDQ2NKFcEAKzriVk!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/. 41 See http://www.prepaidmvno.com/wp-content/uploads/2013/01/Future_MVNOs_Latin_America_-_August_2012.pdf. 42 See http://www.telegeography.com/products/commsupdate/articles/2013/01/25/sutel-to-choose-firm-for-mnp/?utm_ source=CommsUpdate&utm_campaign=d99ad5b718-CommsUpdate+25+January+2013&utm_medium=email. 43 See http://www.telegeography.com/products/commsupdate/articles/2012/05/15/hot-golan-launch-3g-networks/. 44 See http://www.moc.gov.il/sip_storage/FILES/5/605.pdf. 45 See TRA, 2011. 46 See http://www.crc.gov.mn/en/main.php?cid=1&do=5&did=0. 47 See http://www.oxfordbusinessgroup.com/news/make-connection-small-population-spread-over-huge-area-creates-number-hurdles. 48 See http://www.telegeography.com/products/commsupdate/articles/2012/06/18/nawras-plans-to-launch-lte-set-to-boost-3g-wimax/ and http://www.telegeography.com/products/commsupdate/articles/2012/07/17/omantel-launches-lte-network/. 49 See http://www.ita.gov.om/ITAPortal/ITA/strategy.aspx?NID=646&PID=2323&LID=115. 50 See http://www.omantel.om/OmanWebLib/MediaCenter/Press%20Release.aspx?LinkID=5&MenuId=183. 51 See http://www.nawras.om/nawras/mediacentre/pressreleases/tabid/250/vw/1/itemid/36/--nawras-network-turbocharging-programme-positivelyimpacts-the-customer-experience-.aspx. 52 See http://www.telegeography.com/products/commsupdate/articles/2012/06/13/tra-initiative-to-bring-telecoms-to-150-rural-villages/ and http://www.oxfordbusinessgroup.com/news/unlocked-potential-evolving-regulations-and-continued-growth-mobile-broadband-are-fuell. 53 See http://www.oman.om/wps/portal/index/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hjA3cDA39LT1_ vEF9HAyPjMDcvSx8zYxcXE6B8pFm8AQ7gaEBAdzjIPrz6_Tzyc1P1C3IjDHQdFRUBGuNB1g!!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/. 54 See http://www.nation.sc/index.php?art=27695. 55 The survey did not include people living in working camps. 56 See http://www.balancingact-africa.com/news/en/issue-no-569/telecoms/zambia-waives-duty-t/en. 57 See http://www.balancingact-africa.com/news/en/issue-no-586/telecoms/mtn-goes-green-in-za/en. 58 See http://news.idg.no/cw/art.cfm?id=AA6ADFA1-AC08-48EC-3C5791B2DDD71EE3. 59 According to a document published by the Ministry of Transport, Works, Supply and Communication in July 2012. 60 See http://www.zambialii.org/files/zm/legislation/statutory-instrument/2012/38/S.I.%20No.%2038%20for%202012.pdf and http://www.parliament.gov.zm/index.php?option=com_docman&task=doc_view&gid=1007. 61 See http://www.parliament.gov.zm/index.php?option=com_docman&task=doc_view&gid=1007. 62 See http://allafrica.com/stories/201303121306.html?page=2. 63 See http://www.balancingact-africa.com/news/en/issue-no-586/telecoms/mtn-goes-green-in-za/en. 64 See http://www.itnewsafrica.com/2013/01/airtel-zambias-rural-investment-pays-off/. 65 See http://www.telecel.co.zw/index.php/coverage and http://www.telegeography.com/products/commsupdate/articles/2012/09/19/telecel-to-deploy-200-new-base-stations-netone-roams-in-sa/. 66 See http://www.telegeography.com/products/commsupdate/articles/2012/11/26/potraz-targets-improved-coverage-in-remote-areas/. 67 See https://www.econet.co.zw/media-centre/general-news/ecocash-handles-100m-monthly; http://www.telegeography.com/products/commsupdate/articles/2012/10/02/ecocash-attracts-1-7m-users-in-first-year/ and https://www.econet.co.zw/ecocash/. 68 74 Measuring the Information Society 2013 See http://www.potraz.gov.zw/files/POTRAZ_Quaterly_Sector_Statistics.pdf. 69 See http://www.telegeography.com/products/commsupdate/articles/2013/04/17/international-bandwidth-demand-is-decentralising/. 70 See http://www.telegeography.com/products/commsupdate/articles/2012/12/13/ntt-lands-ase-in-hong-kong-ahead-of-target-q1-launch/. 71 See ITU, Broadband Commission for Digital Development and Cisco, 2013. 72 See http://www.teams.co.ke/index.php?option=com_content&view=article&id=59&Itemid=53. 73 See http://broadbandtoolkit.org/Case/ke/6 and MIC, 2012. 74 See http://www.lion-submarinesystem.com/. 75 See http://www.orange-tkl.co.ke/index.php?option=com_content&view=article&id=284:lion2-submarine-cable-goes-live&catid=1:latestnews&Itemid=28. 76 Total used bandwidth increased from 278 329 Mbit/s in September 2012 to 328 641 Mbit/s by December 2012. 77 See http://www.mptc.gov.kh/view/home/default.aspx?info_de=mptc_de_service&s_Id=1 and http://axiata.listedcompany.com/misc/axiata_presentation_13122012.pdf. 78 See http://www.cambodiadaily.com/archive/mobitel-smart-fight-it-out-over-prices-21085/ and http://www.bangkokpost.com/print/334187/. 79 See http://www.itu.int/net/pressoffice/press_releases/2013/CM04.aspx#.UcrdTfn0Geg. 80 ITU, 2012a. 81 ITU correspondence with Central African Republic’s Agence de régulation des télécommunications. 82 See http://www.amc.al/en/latestnews/viewpressrelease/38 and http://www.vodafone.al/vodafone/Vodafone_Albania_202_2.php. 83 See http://www.telegeography.com/products/commsupdate/articles/2013/03/01/the-eagle-has-landed-incumbent-swoops-into-3g-sector/. 84 Information based on the draft version of the broadband strategy. 85 ITU and Broadband Commission, 2012. 86 The regions in this chapter refer to the ITU/BDT regions, see http://www.itu.int/ITU-D/ict/definitions/regions/index.html. 87 The coefficient of variation (CV) measures the dispersion of a variable independently of the variable’s measurement unit. The higher the CV, the greater the dispersion in the variable. 88 See http://www.lion-submarinesystem.com/. 89 See http://www.nation.sc/index.php?art=27695. 90 See http://www.iam.ma/Groupe/Presse/CommuniquesDePresse/Pages/DetailDuCommuniqueDePresse.aspx?itemID=66. 91 See http://www.cellular-news.com/story/19503.php. 92 See http://www.ftthcouncil.eu/documents/Presentations/20121016PressConfBBWF.pdf. 93 For an overview of MTR regulation in the European Union, see the list of countries applying ex-ante regulation to voice call termination on mobile networks (Market 7 under the 2007 EC Recommendation on Relevant Markets), available at https://ec.europa.eu/digital-agenda/sites/digital-agenda/files/Market_overview_25_february_2013.pdf. For more information on the regulatory accounting principles applied to MTRs in Europe, see the European Commission’s Recommendation on the Regulatory Treatment of Fixed and Mobile Termination Rates in the EU, available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:124:0067:0074:EN:PDF. 94 See http://www.vodafone.al/vodafone/Vodafone_Albania_202_2.php. 95 See http://www.telegeography.com/products/commsupdate/articles/2009/07/30/3g-launches-in-turkey/. 96 See http://www.mc.gov.br/acoes-e-programas/programa-nacional-de-banda-larga-pnbl. 97 See http://www.mintic.gov.co/index.php/fibra-inicio and http://www.mintic.gov.co/index.php/vive-digital. 98 See http://www.nationnews.com/articles/view/digicel-launches-4g-network/. 99 See http://www.telegeography.com/products/commsupdate/articles/2012/08/14/vivas-coverage-extended-to-75-of-bolivia-following-usd100minvestment/, http://www.cnt.com.ec/index.php/categoria-noticias/527-comunidades-de-bolivar-se-beneficiaron-con-700-lineas-telefonicascdma-450 and http://www.dominicantoday.com/dr/economy/2012/3/6/42882/Orange-announces-US1500M-for-coverage-network-in-2012. 100 See http://www.telegeography.com/products/commsupdate/articles/2013/01/21/vtr-passes-150000-mobile-users/. 101 75 Measuring the Information Society 2013 Chapter 3. Measuring the cost and affordability of broadband 3.1 Introduction The growing importance of measuring broadband Since the first ICT Price Basket (IPB) was published in 2009 in terms of the uptake of different ICT services and their (ITU, 2009a), ITU has been presenting the results of the relevance in delivering access to today’s information society. IPB annually with the objective of measuring the cost and By end 2008 – the reference year for the first IPB published – affordability of the key ICT services: fixed telephony, mobile there were barely 6 active mobile-broadband subscriptions cellular (voice and SMS) and fixed broadband. The IPB has per 100 inhabitants in the world; now, ITU estimates that by proved to be a useful benchmarking tool for the international end 2013 that figure will have grown fivefold. The number comparison of ICT prices covering more than 160 countries. of fixed (wired)-broadband subscriptions has also grown In the broader context of ICT developments, the IPB helps significantly in this time-frame, albeit at a slower pace in identifying those cases where prices constitute a barrier to ICT uptake, and points to best practices and bottlenecks that have an impact on the cost of ICT services. In a departure from previous editions of the Measuring the Information Society (MIS) report, this year’s analysis of ICT prices does not engage in a comprehensive review of the results of the entire IPB and its sub-baskets, but instead concentrates solely on fixed-broadband and mobilebroadband prices. This responds to the current demand for data and benchmarks to support evidence-based policies and regulatory decisions concerning broadband prices. For instance, in October 2011 the Broadband Commission for Digital Development set four targets for 2015, including a specific one on broadband affordability (Target 2): “By 2015, entry-level broadband services should be made affordable in affordability is also evident from the changing situation (Chapter 1). Conversely, fixed-telephone subscriptions have been declining since 2009. Mobile-cellular subscriptions have reached saturation in the majority of countries, and as a result the policy focus is shifting from “how many people use a mobile phone” to “how many people use a mobile phone for accessing the Internet”. In response to these dynamic trends, this chapter focuses on an analysis of broadband prices and affordability. It goes beyond the regular review of fixed-broadband prices included in the chapter on IPB in previous MIS reports, and includes a comprehensive analysis of mobile-broadband prices and affordability, based on the extended data collection carried out by ITU in 2012. developing countries through adequate regulation and market In addition, fixed- and mobile-broadband prices are forces (amounting to less than 5% of average monthly income)” compared, in order to put into perspective the costs of (Broadband Commission for Digital Development, 2011). accessing broadband Internet services. Mobile-broadband Hence the need for global and harmonized data to measure prices are also compared with mobile-cellular prices, with broadband affordability. a view to assessing whether affordability is a barrier to 77 Chapter 3. Measuring the cost and affordability of broadband replicating the “mobile miracle” (i.e. the mass uptake of highlights the importance of pursuing the international regular mobile-cellular services) in the broadband arena. monitoring of fixed-broadband prices in order to support policy and regulatory decisions addressing the issue of Lastly, this chapter presents and discusses a mobile- affordability of fixed-broadband services. broadband sub-basket, which combines the price of two different mobile-broadband plans into a single benchmarking Fixed-broadband prices have been collected by ITU through value per country. This follows the conclusions and the annual ICT Price Basket Questionnaire since 2008. The recommendations of the tenth World Telecommunication/ fixed-broadband plan chosen represents an entry-level ICT Indicators Meeting held in September 2012 in Bangkok, postpaid fixed-broadband plan, with a minimum speed Thailand, which highlighted the importance of developing of 256 kbit/s and a monthly usage of (a minimum of ) 1 a mobile-broadband price basket. Gigabyte (GB). For plans that are limited in terms of data 1 allowance (below 1 GB), the cost per additional byte is added The results of the latest IPB are presented in Tables 3.18 to to the monthly subscription price up to 1 GB. 3.21 at the end of this chapter. They include end-2012 data for each of the three price sets contained in the IPB (fixed- Prices are presented in USD and PPP$ and also calculated telephone, mobile-cellular and fixed-broadband services), as a percentage of GNI p.c. so as to provide an insight into as well as the general IPB ranking combining the three subbaskets expressed in terms of GNI per capita (GNI p.c.). Prices are expressed as a percentage of GNI p.c. in order to show them in relative terms to the income generated by each country, thus pointing to the affordability of each ICT service. The methodological details of the IPB and the collection of mobile-broadband prices can be found in Annex 2. the affordability of fixed broadband. Countries are ranked according to the price of fixed broadband as a percentage of GNI p.c. The lower the percentage, the lower the relative cost of the service. This section analyses the 2008-2012 trends in fixedbroadband prices around the world and by level of development. It also examines the country data for 2012, highlighting those economies that stand out in the overall results of fixed-broadband prices. Lastly, it includes a review of 2012 fixed-broadband prices in each region. 3.2 Fixed-broadband prices Fixed broadband continues to be a critical service for achieving the full benefits of the Internet as a development enabler, because it remains the primary means of accessing highspeed, high-capacity and reliable Internet services (ITU, 2012a). At present, deployments of advanced mobile-broadband technologies, such as LTE-Advanced and WirelessMANAdvanced,2 are still limited. Therefore, only a small fraction of Global trends in fixed-broadband prices, 2008-2012 A global analysis of fixed-broadband prices from 2008 to 2012, based on the 144 economies for which fixed-broadband data are available for 2008, 2009, 2010, 2011 and 2012,3 shows that services are becoming more and more affordable. Globally, the fixed-broadband prices dropped from 115.1 per cent of GNI p.c. in 2008 to 22.1 per cent in 2012. total mobile subscriptions correspond to technologies beyond 3G – an estimated 0.9 per cent of the world total by end 2012 The biggest drop occurred in developing countries, where fixed according to Cisco (2013a); and only a minor share of global IP broadband became much more affordable, costing on average traffic corresponds to mobile networks – 2 per cent of global 31.0 per cent of GNI p.c. in 2012, down from 164.6 per cent IP traffic in 2011, as estimated by Cisco (2012). Thus, fixed in 2008. The steepest fall was seen between 2008 and 2009, broadband is still the main option for medium- and high-end when prices (relative to GNI p.c.) in the developing countries users, including businesses and many residential customers. almost halved, before declining at over 30 per cent per year from 2009 to 2011. Moreover, fixed broadband continues to At the same time, fixed broadband continues to be the become more affordable in the developing world, with a drop most expensive service of all those included in the IPB. This of 23.0 per cent from 2011 to 2012 (Chart 3.1). 78 Measuring the Information Society 2013 Chart 3.1: Fixed-broadband prices, as a percentage of GNI p.c. (left) and annual change (right), 2008-2012 120 115.1 164.6 Developed Developing 100 World As % of GNI p.c. 85.1 Developing Developed 80 1.9 -22.5 -23.0 World 1.4 -31.8 -32.2 2011/2012 2010/2011 59.4 60 -17.0 59.7 40 41.8 28.5 20 2.5 2.0 1.7 1.7 2008 2009 2010 2011 0 2009/2010 -30.0 40.3 -30.2 31.0 22.1 -19.1 2008/2009 -48.1 -48.3 1.7 -50 -45 -40 -35 -30 -25 -20 -15 -10 -5 % change 2012 0 5 Note: Simple averages. Based on 144 economies for which 2008, 2009, 2010, 2011 and 2012 fixed-broadband prices were available. Source: ITU. GNI p.c. is based on World Bank data. In developed countries, where fixed-broadband services plans with different advertised speeds, the faster the more were already relatively affordable, prices (relative to GNI p.c.) expensive.5 The 2008-2012 fixed-broadband price data have fallen at a much more moderate rate (17 to 19 per cent show that, with fixed broadband becoming more affordable annually from 2008 to 2010). Since 2010, the average cost globally, minimum broadband speeds have also gone up of fixed-broadband services has stabilized at around 1.7 per (Table 3.1). While in 2008 almost half of the plans included in cent of GNI p.c. on average, and even increased slightly, by the data collection had minimum advertised speeds of 256 1.4 and 1.9 per cent in 2011 and 2012, respectively. In most kbit/s (i.e. the minimum broadband speed), in 2012 about cases, however, an increase in price comes with both a one-fifth of countries offered plans at this speed, and only higher data allowance and faster speeds.4 higher- speed offers were available in the remaining countries. The price of a fixed-broadband plan is often determined by Furthermore, there is a clear trend of moving entry-level speed. For example, the US Internet service provider (ISP) plans towards higher speeds. Indeed, more than a quarter of Verizon offers its customers a choice between four broadband countries offered no fixed-broadband speeds under 2 Mbit/s Table 3.1: Minimum advertised fixed-broadband speeds, percentage of countries, 2008 and 2012 2008 2012 0.256 Advertised speed (Mbit/s) 45.1 20.8 >0.256 - 0.512 18.8 16.0 >0.512 - 1.024 17.4 18.1 >1.024 - 2.048 7.6 13.9 >2.048 - 10 9.0 20.1 - 6.9 2.1 4.2 >10 - 50 Speed not specified Note: Based on 144 economies for which 2008, 2009, 2010, 2011 and 2012 fixed-broadband prices were available. Source: ITU. 79 Chapter 3. Measuring the cost and affordability of broadband Chart 3.2: Fixed-braodband median price per Mbit/s, in USD, world and by level of development, 2008 and 2012 38.9 Developing 141.1 19.5 World 2012 70.1 2008 4.4 Developed 21.4 0 20 40 60 80 100 120 140 160 USD per Mbit/s Note: Based on 144 economies for which 2008, 2009, 2010, 2011 and 2012 fixed-broadband prices were available. Source: ITU. in 2012, compared with only 9 per cent in 2008. Back in 2008, the country in which the entry-level broadband plan had the highest advertised speed was the Czech Republic, at 8.19 Mbit/s. In contrast, in the Republic of Korea and in Romania the lowest speed offered in 2012 was 50 Mbit/s. In both cases, the plans selected correspond to FTTH/B connections, with Box 3.1: Data issues: Comparability and transparency Two major factors affect the comparability of fixed-broadband require operators to publish information on real speeds achieved, prices across countries: differences in speed and differences in but they remain a minority. data allowance. The minimum downstream speed of a broadband Fixed-broadband plans are based on a monthly usage of (a connection is defined at 256 kbit/s, and the data collected are minimum of ) 1 Gigabyte (GB). All 169 countries included in the for plans based on this minimum speed. Where several offers 2012 fixed-broadband price analysis had offers equal to or above (with differing speeds) are available, preference is given to the this data cap. However, only 12 countries had offers at exactly 1 GB cheapest available connection that offers a speed of at least 256 per month, whereas in the majority of countries (101) unlimited kbit/s. Data revealed, however, that in the majority of countries data allowances were offered. In these latter countries, no capped no plans at 256 kbit/s are offered and advertised speeds are often plans for fixed-broadband were available. While plans limited to 1 much higher. In 2012, plans with an advertised speed of 256 kbit/s GB per month are not directly comparable with unlimited offers, were offered in a mere 39 (all of them developing countries) of the price of these unlimited offers is still very competitive and most 169 countries, whereas in 40 countries the recorded plans come of the top-ranking countries have unlimited plans. with an advertised speed of over 2 Mbit/s. The highest entry-level Further issues concerning the comparability of data were revealed by broadband speeds (for FTTH/B connections) were advertised in the data-collection exercise. In some cases, the price for the rental of the Republic of Korea and Romania, where there were no offers a fixed-telephone line or other services, such as television, is bundled below 50 Mbit/s.6 This significant difference in speed and hence and cannot be extracted from the monthly charge. Postpaid fixed- quality of service and user experience limits the comparability broadband subscriptions can vary in terms of commitment periods, of prices. On the other hand, it has to be remembered that with some operators only offering subscriptions for a minimum of information is based on speeds as advertised by operators, and 24 months. Furthermore, it is not always clear whether or not taxes not actual speeds, which can vary significantly. Some countries are included in the advertised price. 80 Measuring the Information Society 2013 optical fibre being the most widely used fixed-broadband based on operators’ information, and not actual speeds, access technology in these economies. which can differ significantly (see Box 3.1). Chart 3.2 shows that the price per unit of speed (Mbit/s) Regional analysis of 2012 fixed-broadband prices 7 also decreased significantly between 2008 and 2012. Globally, the median price was USD 19.5 per Mbit/s in 2012, almost a quarter of the price in 2008.8 The drop in prices per Mbit/s is visible in both developing and developed countries, where median prices in 2012 stood at USD 38.9 and USD 4.4 per Mbit/s, respectively. These numbers show that people in developing countries pay considerably more per Mbit/s. This is partly explained by the fact that the price of broadband per unit of speed tends to decrease with the total speed contracted, i.e. high-speed broadband subscriptions are cheaper in terms of unit price per Mbit/s than low-speed subscriptions. Since the median speed is ten times higher The results of the 2012 fixed-broadband price analysis, which includes 169 economies for which 2012 price data were available, show significant differences in the price and affordability of fixed-broadband subscriptions. The cost of an entry-level fixed-broadband subscription ranges from 0.21 per cent of GNI p.c. in Macao (China) to 386.9 per cent of GNI p.c. in Cuba. In ten countries, for the most part least developed countries (LDCs) from Africa (such as Niger, Madagascar and Malawi) or the Asia-Pacific region (Afghanistan and Solomon Islands), fixed-broadband prices actually exceed the respective countries’ average in developed than in developing countries (5 Mbit/s monthly GNI p.c. (Table 3.2). However, in the majority of compared with 0.512 Mbit/s), prices per Mbit/s are also countries, including more than a third of all developing considerably lower in developed countries. countries with data available for 2012, prices are below 5 per cent of GNI p.c. There are nonetheless a large number It is to be noted that fixed-broadband prices are based on of developing countries where fixed-broadband services 9 entry-level plans and includes only one plan per country. are largely unaffordable: in 28 per cent of developing Thus, it cannot give a complete picture of average advertised countries with data available for 2012, prices are above speeds. Furthermore, the data refer to advertised speeds 20 per cent of GNI p.c. (Chart 3.3). Chart 3.3: Fixed-broadband prices, as a percentage of GNI p.c., by level of development, number of countries, 2012 60 Developed Developing 50 Number of countries 40 34 10 30 1 20 26 10 21 18 6 0 0-2 2-5 5-8 20 18 8-10 10-20 4 4 20-30 30-40 7 40-50 >50 Fixed broadband prices, as % of GNI p.c. Source: ITU. 81 Chapter 3. Measuring the cost and affordability of broadband Table 3.2: Fixed-broadband prices, 2012 Fixed-broadband prices Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 Economy Macao, China Kuwait United States Switzerland Luxembourg Andorra United Kingdom Japan Norway Hong Kong, China Qatar France Sweden Singapore Netherlands Cyprus Belgium Denmark Finland Italy Trinidad & Tobago Austria Canada Ireland Iceland Germany Greece Lithuania Russian Federation United Arab Emirates Malta Spain Latvia Turkey Romania Czech Republic Uruguay Maldives Venezuela Korea (Rep.) Israel Australia Oman Bahamas Croatia Portugal Seychelles Estonia Mauritius Slovenia Poland Kazakhstan Bulgaria Brunei Darussalam Brazil Bahrain Slovakia Tunisia Bosnia and Herzegovina Sri Lanka Panama Mexico Lebanon New Zealand Belarus Costa Rica Chile Saudi Arabia Azerbaijan Ukraine Hungary Malaysia Montenegro TFYR Macedonia Egypt St. Kitts and Nevis Albania Colombia Algeria Peru Libya Barbados Armenia Serbia Argentina as % of GNI p.c. 0.2 0.4 0.4 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.8 1.8 1.8 1.8 1.9 1.9 1.9 1.9 2.0 2.0 2.1 2.1 2.1 2.1 2.1 2.3 2.3 2.4 2.5 2.5 2.5 2.7 2.9 2.9 2.9 3.1 3.3 3.4 3.5 3.5 3.6 3.7 3.8 3.9 4.0 4.3 4.3 4.5 4.5 USD 7.9 14.5 15.0 38.3 40.3 21.8 20.8 26.6 53.3 21.6 54.9 29.2 36.8 30.0 35.4 21.9 34.7 46.4 37.4 28.0 12.3 41.6 40.4 34.8 31.8 41.7 23.7 12.1 10.2 40.6 19.3 33.5 13.8 12.5 9.5 22.6 14.9 8.2 15.4 27.1 38.3 61.9 26.0 30.0 19.0 29.2 16.3 22.2 12.2 36.2 19.9 13.2 10.5 51.7 17.8 26.6 27.6 7.0 8.3 4.5 14.0 17.6 17.6 59.2 11.9 15.8 25.8 39.7 12.7 7.5 31.0 21.6 19.5 13.5 7.6 36.7 11.9 18.7 14.1 18.0 40.8 45.2 12.1 21.2 36.5 PPP$ 9.3 12.6 15.0 23.4 31.5 N/A 19.2 19.9 33.7 31.3 52.8 24.1 26.7 36.6 30.2 22.9 28.8 31.8 28.8 25.5 19.2 35.3 32.4 29.8 26.1 37.3 24.2 18.4 16.6 42.9 24.8 33.6 19.1 20.8 17.2 28.8 16.3 11.5 18.3 36.5 34.0 38.4 29.8 43.0 26.2 33.1 36.7 29.5 20.1 41.0 31.5 15.4 21.5 77.6 16.6 34.6 37.6 15.4 15.7 8.9 25.5 26.7 26.1 49.0 30.9 22.3 31.1 47.3 18.6 15.1 47.8 34.8 36.8 32.1 17.2 41.6 26.4 26.7 23.4 30.9 67.5 66.1 21.3 40.8 58.7 GNI p.c., USD, 2011 (or latest available) 45’460 48’900 48’450 76’380 78’130 41’750 37’780 45’180 88’890 35’160 80’440 42’420 53’230 42’930 49’730 29’450 46’160 60’390 48’420 35’330 15’040 48’300 45’560 38’580 35’020 43’980 25’030 12’280 10’400 40’760 18’620 30’990 12’350 10’410 7’910 18’520 11’860 6’530 11’920 20’870 28’930 46’200 19’260 21’970 13’850 21’250 11’130 15’200 8’240 23’610 12’480 8’220 6’550 31’800 10’720 15’920 16’070 4’070 4’780 2’580 7’910 9’240 9’110 29’350 5’830 7’660 12’280 17’820 5’290 3’120 12’730 8’420 7’060 4’730 2’600 12’480 3’980 6’110 4’470 5’500 12’320 12’660 3’360 5’680 9’740 Fixed-broadband prices Rank 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 Economy Iran (I.R.) Gabon South Africa Grenada Morocco Georgia Jordan India Mongolia Dominican Rep. Antigua & Barbuda Dominica Thailand China Ecuador Bhutan Fiji Saint Lucia Suriname St. Vincent El Salvador Jamaica Bangladesh Moldova Syria Guatemala Paraguay Sudan Indonesia Uzbekistan Botswana Guyana Turkmenistan Viet Nam Cape Verde Honduras Philippines Micronesia Bolivia Marshall Islands Pakistan Angola Samoa Belize Kyrgyzstan Yemen Namibia Nepal Tonga Nicaragua Mauritania Swaziland Djibouti Uganda Cambodia Ghana Nigeria Tanzania Senegal Timor-Leste Vanuatu Kiribati Côte d'Ivoire Kenya Zimbabwe Cameroon Ethiopia Comoros Benin Haiti Lesotho Zambia Burkina Faso Mali Togo S. Tomé & Principe Mozambique Papua New Guinea Malawi Madagascar Niger Afghanistan Solomon Islands Cuba as % of GNI p.c. 4.7 4.8 4.8 4.9 4.9 5.0 5.1 5.1 5.3 5.3 5.5 5.6 5.6 5.6 5.8 6.2 6.4 6.5 6.6 6.6 7.0 7.0 7.3 7.7 7.9 8.6 8.8 9.0 9.1 9.1 9.2 10.1 10.2 11.3 11.3 12.1 12.4 13.7 14.4 15.3 15.5 15.7 16.1 16.3 16.3 16.5 17.5 17.8 19.2 22.8 26.8 27.5 29.9 32.9 34.0 36.6 39.0 42.4 42.8 43.5 44.0 44.0 46.2 49.3 56.3 61.0 71.0 81.5 81.5 81.9 84.0 85.1 98.2 98.4 101.2 103.0 149.3 150.5 169.7 177.8 210.2 221.3 280.2 386.9 Source: ITU. GNI p.c. and PPP$ are based on World Bank data. USD exchange rates are based on IMF data. 82 USD 17.8 31.8 28.1 29.4 12.2 11.9 18.7 6.0 10.3 23.3 54.9 33.0 20.7 23.2 20.2 10.7 19.5 36.2 41.9 33.6 20.3 29.2 4.7 12.8 18.1 20.6 21.8 9.7 22.2 11.5 57.3 24.5 35.0 11.8 33.3 19.9 22.9 33.0 24.5 50.0 14.5 53.2 42.7 50.0 12.5 14.7 68.7 8.0 57.3 22.2 22.3 75.7 31.6 14.0 23.5 43.0 39.0 19.1 38.1 99.0 105.2 77.4 42.4 33.7 30.0 61.5 23.7 52.3 53.0 47.8 85.4 82.3 46.6 50.0 47.2 116.8 58.5 185.6 48.1 63.7 63.0 53.5 259.2 1760.4 PPP$ 48.6 45.7 38.4 42.2 20.0 20.4 24.0 14.4 16.0 41.6 70.3 58.6 36.2 36.1 37.4 27.2 21.3 48.5 47.4 57.8 37.8 42.2 11.8 22.0 38.9 32.1 32.6 16.9 29.7 21.2 97.4 28.2 68.1 26.2 36.2 36.2 39.9 39.8 51.9 N/A 33.8 61.3 55.3 81.3 28.2 25.4 88.6 16.6 64.1 52.5 49.8 124.0 60.2 42.2 62.0 51.6 68.0 54.9 67.5 175.4 158.7 111.2 64.0 71.6 N/A 115.2 74.0 72.2 107.6 77.7 132.4 0.1 101.7 82.2 84.3 163.1 107.4 271.1 119.7 132.7 123.3 129.0 502.6 N/A GNI p.c., USD, 2011 (or latest available) 4’520 7’980 6’960 7’220 2’970 2’860 4’380 1’410 2’320 5’240 12’060 7’090 4’420 4’940 4’140 2’070 3’680 6’680 7’640 6’100 3’480 4’980 770 1’980 2’750 2’870 2’970 1’300 2’940 1’510 7’480 2’900 4’110 1’260 3’540 1’970 2’210 2’900 2’040 3’910 1’120 4’060 3’190 3’690 920 1’070 4’700 540 3’580 1’170 1’000 3’300 1’270 510 830 1’410 1’200 540 1’070 2’730 2’870 2’110 1’100 820 640 1’210 400 770 780 700 1’220 1’160 570 610 560 1’360 470 1’480 340 430 360 290 1’110 5’460 Measuring the Information Society 2013 Chart 3.4: Fixed-broadband prices, as a percentage of GNI p.c., by region, 2012 70 60 As % of GNI p.c. 50 40 30 World average (22.1) 20 10 0 Europe CIS Arab States The Americas Asia & Pacific Africa Note: Simple averages. Source: ITU. A regional analysis of 2012 fixed-broadband prices reveals the Americas region, which contains not only countries significant differences in affordability between and within with some of the most affordable 2012 fixed-broadband the six regions considered. Prices in Europe are very prices, such as the United States, but also the country affordable throughout the region, with a maximum value with the least affordable prices (Cuba). The Asia and the of 4.5 per cent of GNI p.c. (in Serbia) and an average of Pacific region shows similar differences, with the region’s just 1.5 per cent of GNI p.c. (Chart 3.4 and Table 3.3). The high-income economies10 (Hong Kong (China), Macao differences in affordability of fixed-broadband Internet (China) and Singapore) at the top, and Papua New Guinea, access are also relatively small in the Commonwealth of Afghanistan and Solomon Islands with unaffordable Independent States (CIS), where prices range from 1.2 fixed-broadband prices of over 100 per cent of GNI p.c. per cent of GNI p.c. in the Russian Federation to 16.3 in On average, fixed-broadband prices are by far the least Kyrgyzstan, with an average regional value of 5.8 per cent affordable in Africa, with an average regional value of 64.3 of GNI p.c. In the remaining four regions, the differences per cent of GNI p.c. Although the price of fixed-broadband in affordability are striking. The widest range is found in subscriptions is below 5 per cent of GNI p.c. in four Table 3.3: Fixed-broadband prices ranges and averages as a percentage of GNI p.c., by region, 2012 Region Europe Minimum 0.6 Maximum 4.5 Range 3.9 Average value 1.5 CIS 1.2 16.3 15.1 5.8 Arab States 0.4 81.5 81.1 10.8 The Americas 0.4 386.9 386.5 18.9 Asia & Pacific 0.2 280.2 280.0 28.9 Africa 1.8 210.2 208.4 64.3 Source: ITU. 83 Chapter 3. Measuring the cost and affordability of broadband countries from the region (Seychelles, Mauritius, Gabon in Seychelles and Mauritius to 210.2 per cent of GNI p.c. in and South Africa), prices correspond to over 40 per cent Niger. Fixed-broadband services are most affordable in the of GNI p.c. in no fewer than half of the African countries countries with the highest GNI p.c. levels in the region, while included in the analysis. the countries with the least affordable fixed-broadband The following section presents a detailed analysis of fixedbroadband prices within each region. Prices are presented as a percentage of monthly GNI p.c., and in USD and international dollars (PPP$).11 Prices in PPP$ provide a measure of the cost of the service irrespective of income, but taking into account the purchasing power equivalence between countries.12 prices are all LDCs. This underlines the strong link between income/development levels and affordability. On the other hand, two LDCs, Uganda and Tanzania, have lower relative fixed-broadband prices than other countries in the region with higher income levels (see Table 3.4). This is also confirmed when looking at the price of fixed-broadband services in terms of purchasing power parity, which takes into account Fixed-broadband prices in Africa the national buying power of a local currency (see Chart 3.5). Africa has the least affordable fixed-broadband prices in prices. Further countries with relatively low prices in terms the world, with an average value of 64.3 per cent of GNI p.c. of PPP$ include Mauritius, Cape Verde, Seychelles and South Within the region, prices range from 1.8 per cent of GNI p.c. Africa, where prices remain below PPP$ 40. Both Uganda and Tanzania stand out with relatively low PPP$ Table 3.4: Fixed-broadband prices, Africa, 2012 Fixed-broadband prices Global Regional rank rank Economy 47 1 Seychelles 49 2 Mauritius 87 3 Gabon 88 4 South Africa 116 5 Botswana 120 6 Cape Verde 127 7 Angola 132 8 Namibia 137 9 Swaziland 139 10 Uganda 141 11 Ghana 142 12 Nigeria 143 13 Tanzania 144 14 Senegal 148 15 Côte d'Ivoire 149 16 Kenya 150 17 Zimbabwe 151 18 Cameroon 152 19 Ethiopia 154 20 Benin 156 21 Lesotho 157 22 Zambia 158 23 Burkina Faso 159 24 Mali 160 25 Togo 161 26 S. Tomé & Principe 162 27 Mozambique 164 28 Malawi 165 29 Madagascar 166 30 Niger as % of GNI p.c. 1.8 1.8 4.8 4.8 9.2 11.3 15.7 17.5 27.5 32.9 36.6 39.0 42.4 42.8 46.2 49.3 56.3 61.0 71.0 81.5 84.0 85.1 98.2 98.4 101.2 103.0 149.3 169.7 177.8 210.2 USD 16.3 12.2 31.8 28.1 57.3 33.3 53.2 68.7 75.7 14.0 43.0 39.0 19.1 38.1 42.4 33.7 30.0 61.5 23.7 53.0 85.4 82.3 46.6 50.0 47.2 116.8 58.5 48.1 63.7 63.0 PPP$ 36.7 20.1 45.7 38.4 97.4 36.2 61.3 88.6 124.0 42.2 51.6 68.0 54.9 67.5 64.0 71.6 N/A 115.2 74.0 107.6 132.4 93.7 101.7 82.2 84.3 163.1 107.4 119.7 132.7 123.3 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. 84 GNI p.c., USD, 2011 (or latest available) 11’130 8’240 7’980 6’960 7’480 3’540 4’060 4’700 3’300 510 1’410 1’200 540 1’070 1’100 820 640 1’210 400 780 1’220 1’160 570 610 560 1’360 470 340 430 360 Measuring the Information Society 2013 Chart 3.5: Purchasing-power-adjusted fixed-broadband prices in the Africa region, 2012 180 160 140 120 PPP$ 100 80 60 40 20 M a Ca urit pe ius Se Verd So yche e ut lle h s Af r Ug ica an d Ga a bo Gh n Ta ana nz an A Cô n ia te go d’ la Ivo Se ire ne g Ni al ge ri Ke a n Et ya hi op ia M ali T Na ogo m ib Za ia m Bo b Bu tsw ia rk an M ina a oz Fa am so bi qu e B Ca en m in er o M on Sw alaw az i ila n S. M Leso d To ad th m ag o é& a s Pr car in cip e 0 Note: PPP$ values are not available for Zimbabwe. Source: ITU. PPP$ values are based on World Bank data. A shortage of international Internet connectivity and a lack Fixed-broadband prices in the Americas of broadband infrastructure are commonplace in the Africa region, and represent major barriers to price decreases. As Fixed-broadband prices in the Americas region range from pointed out in previous editions of this report, an increase 0.4 per cent of GNI p.c. in the United States to 386.9 per in international Internet bandwidth often has a positive cent of GNI p.c. in Cuba, which has the least affordable effect on prices. An important development in 2012 was prices globally. In about half of the region’s countries, the landing of two major cable systems on the African fixed-broadband prices are below 5 per cent of GNI p.c. The continent: the West Africa Cable System (WACS),which went high-income countries Trinidad and Tobago, Canada and live in May 2012, and Africa Coast to Europe (ACE), which Bahamas have very affordable fixed-broadband prices at launched services in a first set of countries in December below 2 per cent of GNI p.c., as do Uruguay and Venezuela, 2012.13 WACS links South Africa to the United Kingdom with where GNI p.c. levels are among the lowest (see Table 3.5). landing points in Namibia, Angola, Democratic Republic of Chart 3.6 shows the price of fixed-broadband services in the Congo, Republic of the Congo, Cameroon, Nigeria, Togo, terms of PPP$, which takes into account the national buying Ghana, Cote d’Ivoire and Cape Verde. With the landing of power of a local currency, and confirms the low prices of ACE, the Gambia, Guinea, Equatorial Guinea, Liberia, Sao fixed-broadband services in Uruguay and Venezuela, as Tomé and Principe and Sierra Leone will for the first time well as in Brazil, Costa Rica and Panama, where prices were be connected directly to an international submarine cable. below PPP$ 25. 14 Since shortage of international connectivity constitutes a major bottleneck in Africa (see, for instance, Chapter 4 in A number of countries from the Americas region have ITU, 2011a), the direct connection of these countries to national broadband strategies that include the promotion international traffic routes could drive fixed-broadband of entry-level broadband plans with the objective of prices down significantly, provided that local ISPs can benefit bringing down prices and increasing uptake. In Uruguay, from competitive prices to connect to the international for example, the “Agenda digital Uruguay 2011-2015” sets 15 gateways. objectives with regard to ICT development, the first being 85 Chapter 3. Measuring the cost and affordability of broadband Table 3.5: Fixed-broadband prices, the Americas, 2012 Fixed-broadband prices Global Regional rank rank Economy 3 1 United States 21 2 Trinidad & Tobago 23 3 Canada 37 4 Uruguay 39 5 Venezuela 44 6 Bahamas 55 7 Brazil 61 8 Panama 62 9 Mexico 66 10 Costa Rica 67 11 Chile 76 12 St. Kitts and Nevis 78 13 Colombia 80 14 Peru 82 15 Barbados 85 16 Argentina 89 17 Grenada 95 18 Dominican Rep. 96 19 Antigua & Barbuda 97 20 Dominica 100 21 Ecuador 103 22 Saint Lucia 104 23 Suriname 105 24 St. Vincent and the Grenadines 106 25 El Salvador 107 26 Jamaica 111 27 Guatemala 112 28 Paraguay 117 29 Guyana 121 30 Honduras 124 31 Bolivia 129 32 Belize 135 33 Nicaragua 155 34 Haiti 169 35 Cuba as % of GNI p.c. 0.4 1.0 1.1 1.5 1.5 1.6 2.0 2.1 2.3 2.5 2.5 3.5 3.7 3.9 4.3 4.5 4.9 5.3 5.5 5.6 5.8 6.5 6.6 6.6 7.0 7.0 8.6 8.8 10.1 12.1 14.4 16.3 22.8 81.9 386.9 USD 15.0 12.3 40.4 14.9 15.4 30.0 17.8 14.0 17.6 15.8 25.8 36.7 18.7 18.0 45.2 36.5 29.4 23.3 54.9 33.0 20.2 36.2 41.9 33.6 20.3 29.2 20.6 21.8 24.5 19.9 24.5 50.0 22.2 47.8 1760.4 PPP$ 15.0 19.2 32.4 16.3 18.3 43.0 16.6 25.5 26.7 22.3 31.1 41.6 26.7 30.9 66.1 58.7 42.2 41.6 70.3 58.6 37.4 48.5 47.4 57.8 37.8 42.2 32.1 32.6 28.2 36.2 51.9 81.3 52.5 77.7 N/A GNI p.c., USD, 2011 (or latest available) 48’450 15’040 45’560 11’860 11’920 21’970 10’720 7’910 9’240 7’660 12’280 12’480 6’110 5’500 12’660 9’740 7’220 5’240 12’060 7’090 4’140 6’680 7’640 6’100 3’480 4’980 2’870 2’970 2’900 1’970 2’040 3’690 1’170 700 5’460 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. “Internet for all” (AGESIC, 2011). This ambitious objective as the United States, the national broadband plan “Connect aims to achieve 60 per cent of households connected to America” earmarks resources from the Federal Universal a broadband Internet connection by 2012 and 80 per cent Service Fund for meeting the national broadband availability by 2015. Under the agenda, state-owned telecom operator target: “Every household and business location in America ANTEL offers a prepaid entry-level fixed-broadband plan should have access to affordable broadband service” (Federal with an advertised speed of 512 kbit/s and 1 GB of free Communications Commission, 2010). data per 30-day period.15 Customers need to pay for an Fixed-broadband prices in the Arab States ANTEL fixed-telephone line to be able to use the service, but there is no additional fee for the Internet subscription. Kuwait has the most affordable fixed-broadband prices in Similar government-led initiatives exist in Costa Rica and the region, and the second most affordable prices globally, Venezuela, whereas in Brazil agreements on affordable fixed- at 0.4 per cent of GNI p.c., followed by the region’s other broadband plans have been reached with private operators high-income countries: Qatar, United Arab Emirates, Oman (ITU, 2012a). Also in the region’s developed countries, such and Bahrain. In all five countries, the price of 1 GB of fixed 86 Measuring the Information Society 2013 Chart 3.6: Purchasing-power-adjusted fixed-broadband prices in the Americas region, 2012 90 80 70 60 PPP$ 50 40 30 20 10 Un ite d S Ur tate ug s u Tr in V B ay id en ra ad e zi & zue l T Co oba la sta go Pa Ric Co nama lo a m M bia ex Gu ico ya n Pe a Gu C ru at hil em e Ca ala Pa na r d Ho agu a nd ay St E u . K El cua ras itt Sa do Do s a lva r m nd do in N r ica ev n is Ja Rep m Gr aic . en a Ba a h d Su am a r Sa ina as in m St tL e .V uc in B ce N ol ia nt ica ivi an ra a d gu Do the a G Ar min . An ge ica tig ua Ba ntin & rba a Ba do rb s ud Ha a Be iti liz e 0 Note: PPP$ values are not available for Cuba. Source: ITU. PPP$ values are based on World Bank data. broadband is equal to or below 2 per cent of GNI p.c. On the other hand, prices are much less affordable in the region’s least developed countries, with the highest prices recorded in Comoros, at 81.5 per cent of GNI p.c. In more than half of the countries, fixed-broadband prices are below 5 per cent of GNI p.c., including the lower-middle income countries Egypt and Morocco. Tunisia and Lebanon also have very affordable fixed-broadband prices, at around 2 per cent of GNI p.c., which is comparable to the region’s high-income economies (see Table 3.6). Table 3.6: Fixed-broadband prices, Arab States, 2012 Fixed-broadband prices Global Regional rank rank Economy Kuwait 2 1 11 2 Qatar 30 3 United Arab Emirates 43 4 Oman 56 5 Bahrain 58 6 Tunisia 63 7 Lebanon 68 8 Saudi Arabia 75 9 Egypt 79 10 Algeria 81 11 Libya 90 12 Morocco 92 13 Jordan 110 14 Syria 113 15 Sudan 131 16 Yemen 136 17 Mauritania 138 18 Djibouti 153 19 Comoros as % of GNI p.c. 0.4 0.8 1.2 1.6 2.0 2.1 2.3 2.7 3.5 3.8 4.0 4.9 5.1 7.9 9.0 16.5 26.8 29.9 81.5 USD 14.5 54.9 40.6 26.0 26.6 7.0 17.6 39.7 7.6 14.1 40.8 12.2 18.7 18.1 9.7 14.7 22.3 31.6 52.3 PPP$ 12.6 52.8 42.9 29.8 34.6 15.4 26.1 47.3 17.2 23.4 67.5 20.0 24.0 38.9 16.9 25.4 49.8 60.2 72.2 GNI p.c., USD, 2011 (or latest available) 48’900 80’440 40’760 19’260 15’920 4’070 9’110 17’820 2’600 4’470 12’320 2’970 4’380 2’750 1’300 1’070 1’000 1’270 770 Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. 87 Chapter 3. Measuring the cost and affordability of broadband Chart 3.7: Purchasing-power-adjusted fixed-broadband prices in the Arab States region, 2012 80 70 60 PPP$ 50 40 30 20 10 Ku wa it Tu ni sia Su da n Eg yp t M or oc co Al ge ria Jo rd an Ye m e Le n ba no n Om an Ba h Un ra in ite d Ar S yr ab Em ia i Sa rate ud s iA ra b M au ia rit an ia Qa ta Dj r ib ou ti Lib y Co a m or os 0 Source: ITU. PPP$ values are based on World Bank data. Chart 3.7 shows fixed-broadband prices in terms of A comparison of fixed-broadband prices in terms of purchasing power parity, which takes into account the purchasing power parity, which takes into account the national buying power of a local currency. This comparison national buying power of a local currency, shows that fixed confirms that prices are very low in Kuwait, Tunisia, Egypt broadband is quite inexpensive in a number of countries and Morocco, at below PPP$ 20, but also in the LDC Sudan, with a relatively low GNI p.c. levels, including Sri Lanka, where 1 GB of fixed-broadband costs PPP$ 16.9. Prices in Bangladesh, India and Nepal (see Chart 3.8). Comoros are again highest when measured in PPP$, at PPP$ 72.2. Qatar, too, registers very high prices in terms of PPP$ (PPP$ 52.8), but given that it has the highest GNI p.c. levels in the region and one of the highest levels worldwide, fixed broadband nevertheless remains relatively affordable Numerous countries in the region have implemented national broadband strategies in order to increase broadband penetration. An important aspect of these strategies is the promotion of affordable access, which in relation to income. acknowledges that high costs are a major barrier to Fixed-broadband prices in Asia and the Pacific reduce broadband access costs are an integral part of the broadband uptake. In Malaysia, for example, initiatives to country’s National Broadband Initiative,16 under which, for The Asia and the Pacific region includes the economy with instance, young people aged 21 to 30 have since January the most affordable fixed-broadband prices globally, namely 2013 been able to apply for a MYR 200 (about USD 65) Macao (China), at 0.2 per cent of GNI p.c., but also three rebate off selected smartphones costing a maximum of countries (Papua New Guinea, Afghanistan and Solomon MYR 500. This initiative targets young people in the lower- Islands) where prices exceed the monthly GNI p.c. Fixed- income bracket and aims to reduce the price barrier for broadband prices as a percentage of GNI p.c. are below those who do not yet use a smartphone.17 Another flagship 5 per cent in around one-third of countries, including such endeavour under the Malaysian National Broadband diverse economies in terms of income and development Initiative is the 1 Million Netbooks programme, under as Australia, Sri Lanka and the Islamic Republic of Iran (see which netbooks are distributed to low-income households Table 3.7). so as to enable them to access broadband services. 18 88 Measuring the Information Society 2013 Table 3.7: Fixed-broadband prices, Asia and the Pacific, 2012 Fixed-broadband prices Global Regional rank rank Economy 1 1 Macao, China 8 2 Japan 10 3 Hong Kong, China 14 4 Singapore 38 5 Maldives 40 6 Korea (Rep.) 42 7 Australia 54 8 Brunei Darussalam 60 9 Sri Lanka 64 10 New Zealand 72 11 Malaysia 86 12 Iran (I.R.) 93 13 India 94 14 Mongolia 98 15 Thailand 99 16 China 101 17 Bhutan 102 18 Fiji 108 19 Bangladesh 114 20 Indonesia 119 21 Viet Nam 122 22 Philippines 123 23 Micronesia 125 24 Marshall Islands 126 25 Pakistan 128 26 Samoa 133 27 Nepal 134 28 Tonga 140 29 Cambodia 145 30 Timor-Leste 146 31 Vanuatu 147 32 Kiribati 163 33 Papua New Guinea 167 34 Afghanistan 168 35 Solomon Islands as % of GNI p.c. 0.2 0.7 0.7 0.8 1.5 1.6 1.6 1.9 2.1 2.4 3.1 4.7 5.1 5.3 5.6 5.6 6.2 6.4 7.3 9.1 11.3 12.4 13.7 15.3 15.5 16.1 17.8 19.2 34.0 43.5 44.0 44.0 150.5 221.3 280.2 USD 7.9 26.6 21.6 30.0 8.2 27.1 61.9 51.7 4.5 59.2 21.6 17.8 6.0 10.3 20.7 23.2 10.7 19.5 4.7 22.2 11.8 22.9 33.0 50.0 14.5 42.7 8.0 57.3 23.5 99.0 105.2 77.4 185.6 53.5 259.2 PPP$ 9.3 19.9 31.3 36.6 11.5 36.5 38.4 77.6 8.9 49.0 34.8 48.6 14.4 16.0 36.2 36.1 27.2 21.3 11.8 29.7 26.2 39.9 39.8 N/A 33.8 55.3 16.6 64.1 62.0 175.4 158.7 111.2 271.1 129.0 502.6 GNI p.c., USD, 2011 (or latest available) 45’460 45’180 35’160 42’930 6’530 20’870 46’200 31’800 2’580 29’350 8’420 4’520 1’410 2’320 4’420 4’940 2’070 3’680 770 2’940 1’260 2’210 2’900 3’910 1’120 3’190 540 3’580 830 2’730 2’870 2’110 1’480 290 1’110 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. Although these initiatives do not target the cost of the broadband subscription directly, they help reduce the total cost of ownership of broadband services. A further example is the Intel World Ahead Program, which bundles entry-level PCs and prepaid broadband plans in order to make broadband affordable to lower-income users. This initiative has been launched in partnership with telecommunication operators in several Asian countries, including Viet Nam, India and China.19 Fixed-broadband services are particularly unaffordable in the small island developing states (SIDS) of Papua New Guinea, Solomon Islands, Kiribati, Vanuatu and TimorLeste, where prices are above 40 per cent of GNI p.c. Broadband prices in SIDS are often high on account of their geographic isolation, small market size and difficult access to international Internet bandwidth. 89 Chapter 3. Measuring the cost and affordability of broadband Chart 3.8: Purchasing-power-adjusted fixed-broadband prices in the Asia and the Pacific region, 2012 500 450 400 350 PPP$ 300 250 200 150 100 50 M Sri ac La ao nk ,C a M hi Ba ald na ng iv la es de sh I M nd on ia go Ne lia p Ja al pa n Vi F et iji N Bh am Ho I ng n uta Ko don n ng es , C ia Pa hin k a M ista al n ay s Ch ia T i Ko ha na re ila a nd Sin (Re ga p.) Au por M str e ic a Ph ron lia ilip esi p a Ne Iran ines w (I. Ze R. al ) a Sa nd Ca m Br o m un bo a ei d Da To ia ru ng ss a al Af Kir am gh ib an ati ist Pa V pu Tim anu an a o a So New r-Le tu lo G st m u e on in Isl ea an ds 0 Note: PPP$ values are not available for Marshall Islands. Source: ITU. PPP$ values are based on World Bank data. Fixed-broadband prices in the Commonwealth of Independent States Fixed-broadband prices are on average quite affordable in the CIS region. Relative prices are lowest in the Russian Federation, at 1.2 per cent of GNI p.c., and are below 5 per cent of GNI p.c. in all countries except Moldova, Uzbekistan, Turkmenistan and Kyrgyzstan, where the service is the least affordable at 16.3 per cent of GNI p.c. (see Table 3.8). A comparison of fixed-broadband prices in terms of PPP$ (see Chart 3.9), which takes into account the national buying power of a local currency, confirms the low relative prices in the region. Prices are below or around PPP$ 30 in all countries except Turkmenistan. Ukraine has the lowest purchasing-power adjusted prices in the region, at PPP$ 15.1, followed by Kazakhstan at PPP$ 15.4. Table 3.8: Fixed-broadband prices, CIS, 2012 Fixed-broadband prices Global Regional rank rank Economy 29 1 Russian Federation 52 2 Kazakhstan 65 3 Belarus 69 4 Azerbaijan 70 5 Ukraine 83 6 Armenia 91 7 Georgia 109 8 Moldova 115 9 Uzbekistan 118 10 Turkmenistan 130 11 Kyrgyzstan as % of GNI p.c. 1.2 1.9 2.5 2.9 2.9 4.3 5.0 7.7 9.1 10.2 16.3 USD 10.2 13.2 11.9 12.7 7.5 12.1 11.9 12.8 11.5 35.0 12.5 PPP$ 16.6 15.4 30.9 18.6 15.1 21.3 20.4 22.0 21.2 68.1 28.2 Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. 90 GNI p.c., USD, 2011 (or latest available) 10’400 8’220 5’830 5’290 3’120 3’360 2’860 1’980 1’510 4’110 920 Measuring the Information Society 2013 Chart 3.9: Purchasing-power-adjusted fixed-broadband prices in the CIS region, 2012 80 70 60 PPP$ 50 40 30 20 10 ist an us km en Tu r Be la r Ky rg yz st an ia ol do va M be Uz Ar m en kis ta n rg ia Ge o n ija ba Az er Ka za kh sta sia n n Fe de ra tio n Ru s Uk ra in e 0 Source: ITU. PPP$ values are based on World Bank data. Fixed-broadband prices in Europe With prices being relatively affordable, policy initiatives focus on the quality and speed of fixed-broadband Fixed broadband is affordable throughout Europe. Relative connections. The Digital Agenda for Europe adopted by prices range from 0.6 per cent of GNI p.c. in Switzerland, the European Union (which most countries in the region Luxembourg and Andorra to 4.5 per cent of GNI p.c. in are either a member of or affiliated with), which aims “to Serbia. All 39 countries included in the region have prices reboot Europe’s economy and help Europe’s citizens and below 5 per cent of GNI p.c., with the vast majority below 2 businesses to get the most out of digital technologies”, per cent of GNI p.c. The relatively low prices in terms of GNI p.c. across the region reflect its high income (see Table 3.9). A regional comparison in terms of purchasing power parity (see Chart 3.10), which takes into account the national buying power of a local currency, further highlights that this set of countries enjoy very low fixed-broadband prices. In Bosnia and Herzegovina, Romania, Lithuania, Latvia and the United Kingdom, a fixed-broadband subscription costs below PPP$ 20 per month. Prices in terms of PPP$ are highest in Hungary, at PPP$ 47.8. Hungary ranks low in a regional comparison (35th out of 39 countries), despite its higher GNI p.c. levels as compared with other countries includes a pillar on fast and ultra-fast Internet access (European Commission, 2010). In order to make the most of broadband and be able to use more advanced services (such as high-definition television or videoconferencing), fast Internet connections are essential. Almost 50 per cent of EU households are offered a 30 Mbit/s fixed-broadband subscription (i.e. that speed is available in the household’s location), and 8.5 per cent of all fixed-broadband subscriptions in the EU have advertised speeds of 30 Mbit/s and above.20 This is also reflected in the fixed-broadband price data, with all European countries providing plans with higher advertised speeds than the minimum required with a similar price measured as a percentage of GNI p.c. 256 kbit/s for an entry-level fixed-broadband plan. In more A high level of competition in highly developed markets entry-level fixed-broadband plan were above 5 Mbit/s, together with ample international Internet bandwidth have including 11 countries with advertised speeds above 10 brought prices down throughout the European region. Mbit/s. Furthermore, data allowances for fixed-broadband than half of European countries, advertised speeds for the 91 Chapter 3. Measuring the cost and affordability of broadband Table 3.9: Fixed-broadband prices, Europe, 2012 Fixed-broadband prices Global Regional rank rank Economy 4 1 Switzerland 5 2 Luxembourg 6 3 Andorra 7 4 United Kingdom 9 5 Norway 12 6 France 13 7 Sweden 15 8 Netherlands 16 9 Cyprus 17 10 Belgium 18 11 Denmark 19 12 Finland 20 13 Italy 22 14 Austria 24 15 Ireland 25 16 Iceland 26 17 Germany 27 18 Greece 28 19 Lithuania 31 20 Malta 32 21 Spain 33 22 Latvia 34 23 Turkey 35 24 Romania 36 25 Czech Republic 41 26 Israel 45 27 Croatia 46 28 Portugal 48 29 Estonia 50 30 Slovenia 51 31 Poland 53 32 Bulgaria 57 33 Slovakia 59 34 Bosnia and Herzegovina 71 35 Hungary 73 36 Montenegro 74 37 TFYR Macedonia 77 38 Albania 84 39 Serbia as % of GNI p.c. 0.6 0.6 0.6 0.7 0.7 0.8 0.8 0.9 0.9 0.9 0.9 0.9 1.0 1.0 1.1 1.1 1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.6 1.8 1.8 1.9 1.9 2.1 2.1 2.9 3.3 3.4 3.6 4.5 USD 38.3 40.3 21.8 20.8 53.3 29.2 36.8 35.4 21.9 34.7 46.4 37.4 28.0 41.6 34.8 31.8 41.7 23.7 12.1 19.3 33.5 13.8 12.5 9.5 22.6 38.3 19.0 29.2 22.2 36.2 19.9 10.5 27.6 8.3 31.0 19.5 13.5 11.9 21.2 PPP$ 23.4 31.5 N/A 19.2 33.7 24.1 26.7 30.2 22.9 28.8 31.8 28.8 25.5 35.3 29.8 26.1 37.3 24.2 18.4 24.8 33.6 19.1 20.8 17.2 28.8 34.0 26.2 33.1 29.5 41.0 31.5 21.5 37.6 15.7 47.8 36.8 32.1 26.4 40.8 GNI p.c., USD, 2011 (or latest available) 76’380 78’130 41’750 37’780 88’890 42’420 53’230 49’730 29’450 46’160 60’390 48’420 35’330 48’300 38’580 35’020 43’980 25’030 12’280 18’620 30’990 12’350 10’410 7’910 18’520 28’930 13’850 21’250 15’200 23’610 12’480 6’550 16’070 4’780 12’730 7’060 4’730 3’980 5’680 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. USD exchange rates are based on IMF data. plans are very high in the region, with the vast majority of upon by the ITU Expert Group on Telecommunication/ countries offering unlimited plans (see Box 3.1). ICT Indicators (EGTI)22 and endorsed by the tenth World Telecommunication/ICT Indicators Meeting held in September 2012 in Bangkok, Thailand. The methodology 3.3 Mobile-broadband prices In 2012, for the first time, ITU collected mobile-broadband reflects the lessons learned from a pilot data-collection exercise presented in the 2012 edition of this report. prices through its annual ICT Price Basket Questionnaire.21 Mobile-broadband services may be accessed through a The collection of mobile-broadband price data from ITU computer-based connection, using a USB-modem/dongle Member States and the methodology applied was agreed to connect to the mobile-broadband network, or through 92 Measuring the Information Society 2013 Chart 3.10: Purchasing-power-adjusted fixed-broadband prices in the Europe region, 2012 60 50 PPP$ 40 30 20 10 Bo s ni aa nd He rz eg Ro ovi m n L a a Un ithu nia a ite d La nia Ki tv ng ia d Tu om Bu rke lg y Sw Cy aria itz pru er s l Fr and an Gr ce ee M ce al ta I Ice taly Cr land o Al ati b a Sw ani a Be ede Cz n l ec F giu h inl m Re an pu d Es blic t Ne Ir oni a e t Lu her lan xe la d m nd bo s TF u YR D Pol rg M en and ac m ed ar Po on k rtu ia g S al No pai rw n Isr ay M A ae on us l te tr Ge neg ia rm ro Slo an va y S kia Slo erb i Hu ven a ng ia ar y 0 Note: PPP$ values are not available for Andorra. Source: ITU. PPP$ values are based on World Bank data. a handset-based connection. 23 Furthermore, mobilebroadband subscriptions can be divided into: (i) prepaid plans, for which customers pay in advance; and (ii) postpaid plans, which are normally billed at the end of each month. As usage, packages and availability differ in each case, prices for all four possible combinations – prepaid handsetbased, postpaid handset-based, prepaid computer-based and postpaid computer-based – were collected in order to gain a comprehensive overview of the affordability of these different mobile-broadband services (see Figure 3.1). Figure 3.1: Mobile-broadband services by type of end-user device and plan Prepaid Handset-based Postpaid Mobile broadband Prepaid Computer-based Postpaid Source: ITU. 93 Chapter 3. Measuring the cost and affordability of broadband It should be noted that there are considerable differences The amount of data included in mobile-broadband between mobile-broadband pricing structures and those packages varies considerably between countries and of other ICT services (such as fixed telephony or mobile- a multitude of plans exist targeting different types of cellular telephony). Mobile-broadband customers are customer. In order to capture mobile-broadband prices for usually not charged per byte of usage based on what varying types of usage, including lower-usage and higher- they actually consume/download, but rather pay for usage customers, different data thresholds were suggested a given usage volume (or time). This applies to both by EGTI. For handset-based mobile broadband, both 250 prepaid and postpaid customers. An exception to this MB and 500 MB plans were selected. This reflects the are pay-as-you-go offers, for which customers, similar to typically lower amount of data included in handset-based prepaid mobile-cellular offers, pay for the actual amount offers, and allows a comparison between two different of bytes downloaded. Pay-as-you-go offers, however, are usage patterns. For computer-based mobile-broadband less common and mostly targeted towards low-volume, offers, prices for 1 GB of monthly usage were selected, occasional usage. The price of a mobile-broadband reflecting the typically more extensive use of data services package is determined by the amount of data included, on a laptop or desktop computer. which is different from fixed-broadband offers, where it is speed more often than data allowances that determines All data were collected based on a minimum validity of the price of a subscription. the offer of 30 days. For plans that were limited in terms of Box 3.2: Rules applied in collecting mobile-broadband prices24 1. M obile-broadband prices are collected from the operator with the largest market share in the country, measured by the number of mobile-broadband subscriptions. If this information is not available, mobilebroadband prices are collected from the mobile-cellular for both handset-based and computer-based plans. 9. Prices are collected for the least expensive plan with a (minimum) data allowance of: operator with the largest market share measured by the i. 1 GB for computer-based subscriptions number of mobile-cellular subscriptions. ii. 250 MB and 500 MB for handset-based subscriptions 2. Prices include taxes. providing access to the greater Internet 25 over (a 3. Prices are reported and collected in the national minimum of ) 30 days. currency and then converted to USD and PPP$. 4. Where operators propose different commitment periods for postpaid mobile-broadband plans, the 12-month plan (or the closest to this commitment period) is selected. 5. Only residential, single-user prices are collected. If prices vary between different regions of the country, the prices applying to the largest city (in terms of population) or to the capital city are used. 6. Prices are collected for one of the following technologies: UMTS, HSDPA+/HSDPA, CDMA2000 and IEEE 802.16e. Prices applying to WiFi or hotspots are excluded. 94 8. Prices are collected for prepaid and postpaid services, 10. Data volumes refer to both uploaded and downloaded data. 11. Time-based offers linked to ‘hours of use’ and not to data volumes are excluded. 12. Preference is given to packages that are not bundled (with voice or other services). If the plan chosen includes other services besides mobile broadband, this is specified in a note. 13. Prices refer to a regular (non-promotional) plan and exclude promotional offers and discounts limited in time or to special user groups (for example, existing 7. Prices are collected for both a) handset-based mobile- clients). Special prices that apply to a certain type broadband subscriptions and b) computer-based of device only (iPhone/Blackberry, iPad, etc.) are mobile-broadband subscriptions. excluded. Measuring the Information Society 2013 data allowance (below 250 MB, 500 MB or 1 GB), the price Key findings of the 2012 mobile-broadband data analysis, of the additional bytes was added. For plans that were which includes 146 countries, based on the global figures limited in terms of validity (less than 30 days), the price and the averages by level of development: of the additional days was added to the final monthly price. Two possibilities exist, depending on the operator, • Globally, mobile-broadband prices, like fixedbroadband prices, are on average relatively high, with only the postpaid handset-based plans representing less than 10 per cent of GNI p.c. on average (Chart 3.11). • Prices are very affordable in the developed world, while services are much less affordable in the developing world. In developed countries, all four plans (500 MB prepaid and postpaid handset-based and 1 GB prepaid and postpaid computer-based) represent between 1 and 2 per cent of GNI p.c. In developing countries, average prices range from just over 11 per cent of GNI p.c. (for 500 MB postpaid handset-based plans) to almost 25 per cent of GNI p.c. (for 1 GB prepaid computer-based plans). • Prepaid computer-based plans are the most expensive compared with all other plans, in both developing and developed countries. • Data show that prepaid plans are on average more expensive than postpaid plans for the same usage. Postpaid handset-based plans are most affordable, at around 1 per cent of GNI p.c. in developed countries and around 11 per cent of GNI p.c. in developing countries (Chart 3.11). Computerbased plans are more expensive than handset-based plans in both developing and developed countries, but are also based on a higher amount of data (1 GB instead of 500 MB). for extending a plan limited in terms of data allowance (or validity). The customer: (i) continues to use the service and pays an excess usage charge for additional data26 or (ii) purchases an additional (add-on) package. Thus, for some countries, prices presented in this chapter reflect calculated prices of the base package plus an excess usage charge (e.g. a base package including 400 MB plus the price for 100 MB of excess usage for a monthly usage of 500 MB), or a multiplication of the base package price (e.g. twice the price of a 250 MB plan for a monthly usage of 500 MB). The plans selected represent the least expensive offers including the minimum amount of data for each respective mobile-broadband plan. The guiding idea is to base each plan on what customers would and could purchase given the data allowance and validity of each respective plan. For further details on the agreed rules for mobile-broadband prices see Box 3.2. Prices are presented in USD, in PPP$ and calculated as a percentage of GNI p.c. so as to provide insights into the affordability of mobile broadband. This is in line with the methodology applied for the ICT Price Basket (see Annex 2). Countries are ranked according to the price of mobile broadband as a percentage of GNI p.c. The lower the percentage, the lower the relative cost of the service. Prices are presented and countries are ranked for all four mobile-broadband plans: prepaid handset-based, postpaid Looking at the cost of ICT services in terms of absolute handset-based, prepaid computer-based and postpaid USD values and relative purchasing power parity prices computer-based (Table 3.11 to 3.14). (PPP) adds additional insights to the analysis. PPP-adjusted Analysis of 2012 mobile-broadband prices prices take into account the local buying power of a national currency. This section presents and analyses mobile-broadband In USD terms, postpaid handset-based mobile-broadband prices for 500 MB handset-based plans and 1 GB computer services are slightly more expensive in developed countries based-plans (both prepaid and postpaid). The 250 MB than in developing countries. Computer-based offers (both handset-prices are not discussed insofar as in the majority prepaid and postpaid) as well as prepaid handset-based of countries included in the data collection (from both the offers are on average a little less expensive in developed developing and the developed world) there were no specific countries (Chart 3.12). A comparison of prices in USD, plans for a 250 MB monthly data allowance (Box 3.3). however, does not provide any information about the 95 Chapter 3. Measuring the cost and affordability of broadband Box 3.3: Available mobile-broadband plans according to different monthly data allowances In most countries, operators’ available/advertised offers do majority of countries (64 per cent for prepaid handset-based not exactly match the thresholds agreed by EGTI (250 MB and offers and 75.6 per cent for postpaid handset-based offers), 500 MB for handset-based offers and 1 GB for computer-based operators do not offer mobile-broadband packages below 500 offers). Considering the global scale of the data collection, it is MB of data or, where they do, a 250 MB package is equally as not possible to define usage patterns that apply across all regions expensive as or indeed more expensive than a 500 MB package. and in both developing and developed countries. Table Box 3.3 indicates the percentage of countries where advertised plans matched, lay below or exceeded the respective data allowances of each mobile-broadband plan. There is evidence that users’ average data requirements exceed 250 MB. Cisco, for example, estimates average data traffic for smartphones at 342 MB per month in 2012, with a rapid increase to be expected in the years to come (Cisco, 2013a). While this Although in a number of countries packages are offered that remains an estimate, and while usage varies considerably include only very low amounts of data, the 250 MB handset- between different countries and regions, it underlines that based package – for both prepaid and postpaid handset-based mobile-broadband customers mostly generate and purchase plans – is by far the least common match. A mere 15.2 per cent more than 250 MB per month and that this trend is certain of countries had prepaid handset-based packages and a mere to continue as customers use more and more data-heavy 16.5 per cent had postpaid handset-based packages at exactly applications.27 The 250 MB handset-based prices are therefore 250 MB. In contrast to this, the match was much better for 1 GB not considered in the analysis of mobile-broadband prices in this computer-based packages, 56.7 per cent of countries having chapter; instead, the 500 MB handset-based prices are presented postpaid and 48.4 per cent prepaid offers at 1 GB. In fact, in the and discussed, together with the 1 GB computer-based prices. Table Box 3.3: Match of mobile-broadband plans and monthly data allowances, percentage of countries, 2012 Advertised mobile-broadband data allowances: Lie below the respective data allowance Match the respective data allowance Exceed the respective data allowance 250 MB, prepaid handset-based 20.8 15.2 64.0 250 MB, postpaid handset-based 7.9 16.5 75.6 500 MB, prepaid handset-based 23.8 32.5 43.7 500 MB, postpaid handset-based 6.5 43.5 50.0 1 GB, prepaid computer-based 8.9 48.4 42.7 1 GB, postpaid computer-based 4.7 56.7 38.6 Mobile-broadband plans Note: A total of 146 countries were included in the mobile-broadband data analysis. See Annex Table 2.2 for the number of countries with available data for each of the six mobile-broadband plans. Source: ITU. affordability of services or their relative cost. Average income these services, which few people will be able to afford in is many times higher in developed than in developing developing countries. countries, so customers in developed countries can thus afford ICT services at much higher prices than customers in A comparison of the purchasing-power-adjusted value developing countries. The fact that computer-based offers of mobile-broadband prices between developed and (both prepaid and postpaid) and prepaid handset-based developing countries confirms that services are less expensive offers are more expensive in developing than in developed in developed countries. The most pronounced differences countries in USD points to the very high absolute cost of are between computer-based offers (both prepaid and 96 Measuring the Information Society 2013 Chart 3.11: Mobile-broadband prices as a percentage of GNI p.c., world and by level of development, 2012 1.3 Postpaid handset-based (500 MB) 7.7 11.3 1.1 Prepaid handset-based (500 MB) 11.6 15.7 Developed 1.5 Postpaid computer-based (1 GB) World 13.0 18.8 Developing 2.3 Prepaid computer-based (1 GB) 17.9 24.7 0 5 10 15 20 25 30 As % of GNI per capita Note: Simple averages. The following number of countries are included per plan: prepaid handset-based (500 MB): 126; postpaid handsetbased (500 MB): 124; prepaid computer-based (1 GB): 124; postpaid computer-based (1 GB): 127. Source: ITU. GNI p.c. values are based on World Bank data. Chart 3.12: Mobile-broadband prices, in USD, world and by level of development, 2012 21.6 Postpaid handset-based (500 MB) 25.5 19.4 Developed 24.1 23.7 25.1 Prepaid handset-based (500 MB) World Developing 27.3 Postpaid computer-based (1 GB) 23.7 29.2 34.9 33.1 35.6 Prepaid computer-based (1 GB) 0 5 10 15 20 25 30 35 40 USD Note: Simple averages. The following number of countries are included per plan: prepaid handset-based (500 MB): 126; postpaid handsetbased (500 MB): 124; prepaid computer-based (1 GB): 124; postpaid computer-based (1 GB): 127. Source: ITU. USD exchange rates are based on IMF data. postpaid). The difference in price in terms of PPP$ between developing and developed countries is smallest for the postpaid handset-based offers at 500 MB. While customers in developed countries pay PPP$ 24.3 on average, customers in developing countries pay only slightly more (PPP$ 28.7). Interestingly, there is very little difference in price between 97 Chapter 3. Measuring the cost and affordability of broadband Chart 3.13: Mobile-broadband prices, in PPP$, world and by level of development, 2012 24.3 27.1 28.7 Postpaid handset-based (500 MB) Developed 25.3 Prepaid handset-based (500 MB) World 33.2 36.4 Developing 24.3 Postpaid computer-based (1 GB) 38.3 45.4 36.0 Prepaid computer-based (1 GB) 49.7 55.8 0 10 20 30 40 50 60 PPP$ Note: Simple averages. The following number of countries are included per plan: prepaid handset-based (500 MB): 125; postpaid handsetbased (500 MB): 122; prepaid computer-based (1 GB): 123; postpaid computer-based (1 GB): 125. Source: ITU. PPP$ exchange rate based on World Bank. PPP$ exchange rates were not available for Andorra and Zimbabwe. States, around 12 per cent in Asia and the Pacific and the Americas, and 58 per cent in Africa. the handset-based offers (postpaid and prepaid), and the postpaid computer-based offers (PPP$ 24.3) in developed countries (Chart 3.13). Only prepaid computer-based plans are substantially higher, and globally the highest. • Europe clearly has the most affordable mobilebroadband prices (for all plans), at ≤2 per cent of GNI p.c. • Prices in the Arab States are relatively affordable. In particular, postpaid offers for both handsetbased and computer-based services are very competitive. In the CIS, mobile broadband is equally affordable and the price for 1 GB of computer-based mobile-broadband is only slightly above the price of 500 MB of handset-based mobile broadband (Table 3.10). The following sections highlight some key findings and conclusions that can be drawn from the regional and country analysis of all four mobile-broadband plans (prepaid and postpaid handset-based and prepaid and postpaid computer-based) measured in terms of prices per GNI p.c. Regional and country comparison of mobilebroadband prices Key findings of the 2012 mobile-broadband data comparison The differences in price and affordability of mobile- by region: broadband services across countries are considerable. • • 98 In all six ITU regions, 500 MB postpaid handsetbased plans are the most affordable, at below 6 per cent of GNI p.c., except for Africa, where the price exceeds 36 per cent of GNI p.c. 1 GB of prepaid computer-based mobilebroadband is the most expensive in all regions, at around 7 per cent of GNI p.c. in the CIS and the Arab Prices range from around 0.14 per cent of GNI p.c. to more than 100 and even 300 per cent of GNI p.c. (Tables 3.11-3.14). Austria displays the most affordable mobile-broadband prices for all four plans, at 0.14 per cent of GNI p.c. The top ten consists mostly of European countries, including many Nordic countries. Very affordable services are also found in Measuring the Information Society 2013 Table 3.10: Mobile-broadband prices as a percentage of GNI p.c., by region, 2012 Africa Arab States Asia and the Pacific CIS Europe The Americas Prepaid handset-based (500 MB) 38.8 5.7 5.9 5.7 1.2 5.9 Postpaid handset-based (500 MB) 36.2 2.2 3.5 5.6 1.2 5.0 Prepaid computer-based (1 GB) 58.3 7.4 12.6 7.6 2.0 11.1 Postpaid computer-based (1 GB) 54.6 2.5 10.6 7.4 1.2 8.0 Note: Simple averages. Source: ITU. high-income economies such as Australia, Bahrain, Hong 2 per cent of GNI p.c. Prepaid and postpaid computer-based Kong (China), Qatar and the United States. In more than half mobile-broadband packages are also very affordable in Peru of the countries included, prices remain below 5 per cent and Mauritius. Tunisia is an exception, with very affordable of GNI p.c. for all four plans. Postpaid handset-based plans handset-based prices at around 1 per cent of GNI p.c. and show the highest number of countries below this threshold an equally affordable prepaid computer-based offer at 2.1 (about three-quarters of the 124 countries for which data per cent of GNI p.c., while prepaid computer-based mobile- are available). broadband costs 5.2 per cent of GNI p.c. Mobile-broadband prices are least affordable in the African A number of low and lower-middle income countries LDCs Democratic Republic of the Congo, Niger, Sierra stand out for their competitive offers. Mobile-broadband Leone and Sao Tome and Principe, as well as Zimbabwe. services in Sri Lanka, for all four plans, cost around 1.5 per In these countries, the cost of mobile-broadband services cent of GNI p.c., which is comparable with many developed exceeds monthly GNI p.c. and mobile broadband is thus countries. Equally, in the African low-income country Kenya not affordable to huge segments of the population. The mobile-broadband prices, though still high, are relatively Democratic Republic of the Congo has the least affordable affordable in comparison with other countries in the region. mobile-broadband prices across all four services, with the Egypt stands out among the Arab States in particular for its exception of 500 MB prepaid handset-based offers, which affordable prepaid and postpaid computer-based mobile- are even less affordable in Sao Tomé and Principe at 156.4 broadband offers at around 2 per cent of GNI p.c. per cent of GNI p.c. In between the countries with the most and the least expensive mobile-broadband prices, there are some economies in the middle that stand out as having relatively low prices in relation to their income levels. Comparing prepaid and postpaid mobilebroadband prices Mobile-broadband services have features in common with both mobile-cellular services (mostly prepaid at the global level) and fixed-broadband services (mostly postpaid). The Handset-based offers at 500 MB (both prepaid and postpaid) type of subscription has its importance both for operators cost less than 1.5 per cent of GNI p.c. in upper-middle and for customers. On the one hand, postpaid subscriptions income developing countries from different regions, ensure a continuing minimum revenue flow for operators, such as Kazakhstan, Tunisia, Uruguay, Azerbaijan, Belarus which may thus be able to offer lower prices per unit of use, and Venezuela. This means that handset-based mobile- but in exchange for a stronger financial commitment from the broadband usage is very affordable in these countries and subscriber. On the other hand, prepaid subscriptions are often accessible to prepaid customers as well. Likewise, 1 GB of the only payment method accessible to low-income, low-user computer-based mobile broadband (for both prepaid and segments who do not qualify for postpaid subscriptions, postpaid plans) is very affordable in these countries, at below but the revenue they generate is more uncertain and thus 99 Chapter 3. Measuring the cost and affordability of broadband Table 3.11: Mobile-broadband prepaid handset-based prices (500 MB), 2012 PPP$ GNI p.c., USD, 2011 (or latest available) Rank 4.7 8.8 12.4 26.4 13.8 12.7 8.7 12.8 11.7 25.3 23.1 28.5 30.9 12.9 13.4 15.1 16.9 18.9 15.3 44.9 19.6 7.9 44.3 35.6 7.8 11.3 14.3 7.4 22.2 35.7 40.6 16.3 61.1 11.0 6.6 40.6 43.6 33.2 16.0 34.5 27.0 16.0 20.1 35.8 38.2 63.3 27.6 28.9 15.3 24.8 4.8 83.6 85.0 6.8 26.3 27.4 10.9 7.6 28.8 10.2 28.9 13.5 35.2 48’300 37’780 43’980 80’440 42’420 35’330 15’920 46’200 15’200 48’900 46’160 40’760 76’380 13’850 12’480 16’070 21’250 23’610 12’730 88’890 29’350 8’220 45’460 49’730 4’070 11’860 5’830 5’290 17’820 38’580 45’560 11’920 35’160 3’980 2’580 30’990 29’450 15’040 4’730 18’520 12’660 5’680 8’240 18’620 25’030 60’390 10’400 10’410 6’530 12’280 1’260 31’800 48’450 3’540 7’910 7’910 4’380 2’940 9’240 2’860 6’550 3’120 9’740 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 Prepaid handset-based prices (500 MB) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Economy Austria United Kingdom Germany Qatar France Italy Bahrain Australia Estonia Kuwait Belgium United Arab Emirates Switzerland Croatia Poland Slovakia Portugal Slovenia Hungary Norway New Zealand Kazakhstan Macao, China Netherlands Tunisia Uruguay Belarus Azerbaijan Saudi Arabia Ireland Canada Venezuela Hong Kong, China Albania Sri Lanka Spain Cyprus Trinidad & Tobago TFYR Macedonia Czech Republic Barbados Serbia Mauritius Malta Greece Denmark Russian Federation Turkey Maldives Chile Viet Nam Brunei Darussalam United States Cape Verde Romania Panama Jordan Indonesia Mexico Georgia Bulgaria Ukraine Argentina as % of GNI p.c. 0.1 0.3 0.4 0.4 0.5 0.5 0.5 0.5 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.3 1.3 1.3 1.4 1.4 1.5 1.5 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 2.0 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.2 2.3 2.3 2.3 2.5 2.5 2.6 2.6 2.7 USD 5.6 9.6 13.9 27.5 16.7 13.9 6.6 20.6 8.8 29.0 27.8 27.0 50.7 9.3 8.4 11.1 14.9 16.7 9.9 71.2 23.7 6.8 37.4 41.7 3.6 10.4 5.5 5.1 18.7 41.7 50.5 13.8 42.1 5.0 3.3 40.4 41.7 21.4 6.8 27.0 18.5 8.3 12.2 27.8 37.6 92.2 17.0 17.3 11.0 20.7 2.1 55.6 85.0 6.3 14.6 15.0 8.5 5.7 19.0 5.9 14.2 6.7 21.9 as % of GNI p.c. USD PPP$ GNI p.c., USD, 2011 (or latest available) 2.8 2.8 2.8 2.9 3.0 3.1 3.2 3.4 3.8 3.8 3.9 4.0 4.1 4.5 4.7 4.8 4.8 4.9 5.2 5.2 5.7 5.8 6.3 6.3 6.4 6.9 7.2 7.7 7.8 8.2 8.8 8.9 9.0 9.0 11.3 13.0 14.0 15.8 16.1 16.8 16.9 17.5 17.9 18.3 19.6 20.0 21.8 22.3 23.3 26.1 26.2 28.4 29.8 30.9 35.1 35.7 45.1 65.9 101.3 106.0 109.1 126.4 156.5 20.9 27.8 17.8 3.4 55.0 2.9 14.5 10.0 15.5 21.9 8.4 35.8 42.5 13.9 29.8 6.0 13.4 20.4 8.5 48.2 11.1 29.8 11.5 21.8 10.8 7.5 5.0 19.1 18.6 5.6 34.4 19.6 10.6 56.3 5.1 13.0 26.5 12.1 26.5 10.8 9.9 8.3 47.5 17.8 10.0 49.4 15.8 21.6 9.9 154.1 23.4 96.0 30.3 7.5 12.6 31.8 12.8 25.8 54.0 31.8 30.9 20.0 177.3 31.0 35.6 25.1 8.1 78.9 6.8 24.9 18.6 24.1 29.9 19.1 33.3 70.2 15.2 33.8 11.1 23.7 29.5 14.7 108.8 17.2 42.6 20.1 40.5 22.9 13.0 13.2 28.6 29.1 12.0 44.4 21.8 12.7 95.7 14.6 22.7 32.9 27.4 48.1 27.3 16.0 17.9 61.4 42.2 16.4 80.7 39.6 24.6 29.9 274.1 40.4 110.6 47.0 18.0 26.2 56.2 31.8 47.4 N/A 62.1 68.2 32.5 247.7 9’110 12’060 7’660 1’410 21’970 1’120 5’500 3’480 4’940 6’960 2’600 10’720 12’320 3’680 7’640 1’510 3’360 4’980 1’980 11’130 2’320 6’110 2’210 4’140 2’040 1’300 830 2’970 2’870 820 4’700 2’640 1’410 7’480 540 1’200 2’270 920 1’970 770 700 570 3’190 1’170 610 2’970 870 1’160 510 7’090 1’070 4’060 1’220 290 430 1’070 340 470 640 360 340 190 1’360 Prepaid handset-based prices (500 MB) Economy Lebanon Antigua & Barbuda Costa Rica India Bahamas Pakistan Peru El Salvador China South Africa Egypt Brazil Libya Fiji Suriname Uzbekistan Armenia Jamaica Moldova Seychelles Mongolia Colombia Philippines Ecuador Bolivia Sudan Cambodia Paraguay Guatemala Kenya Namibia Iraq Ghana Botswana Tanzania Nigeria Congo Kyrgyzstan Honduras Bangladesh Haiti Rwanda Samoa Nicaragua Mali Morocco Tajikistan Zambia Uganda Dominican Rep. Yemen Angola Lesotho Afghanistan Madagascar Senegal Malawi Mozambique Zimbabwe Niger Sierra Leone Congo (Dem. Rep.) S. Tomé & Principe Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ are based on World Bank data. USD exchange rates are based on IMF data. 100 Measuring the Information Society 2013 Table 3.12: Mobile-broadband postpaid handset-based prices (500 MB), 2012 Postpaid handset-based prices (500 MB) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Economy Austria Finland Luxembourg Italy Australia Lithuania Hong Kong, China Iceland Qatar Denmark Netherlands Korea (Rep.) Macao, China Kuwait Sweden Estonia Belgium Slovakia Slovenia Sri Lanka Portugal Brunei Darussalam Hungary Norway Latvia Spain France Canada Kazakhstan Bahrain Cyprus Tunisia Uruguay Switzerland United Kingdom Romania Greece Belarus Azerbaijan United Arab Emirates Serbia Saudi Arabia Ireland Venezuela Japan Albania Panama Poland Trinidad & Tobago Germany TFYR Macedonia Barbados Mauritius Turkey Czech Republic Bhutan Russian Federation Maldives Mexico Bosnia and Herzegovina United States Jordan as % of GNI p.c. 0.1 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.4 0.5 0.5 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.5 1.5 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.9 2.0 2.0 2.1 2.1 2.1 2.3 USD 5.6 6.8 13.9 7.0 10.3 2.8 8.1 9.4 27.5 24.0 20.9 9.9 22.2 25.4 30.6 8.8 27.8 9.7 15.3 1.8 14.9 23.8 9.9 71.2 9.9 25.2 34.6 37.4 6.8 13.3 25.5 3.6 10.4 67.1 34.5 7.3 23.4 5.5 5.1 39.5 5.5 18.7 41.7 13.8 55.3 5.0 10.0 16.8 21.4 62.6 6.8 18.5 12.2 15.8 28.2 3.2 17.0 11.0 16.0 8.3 85.0 8.5 Postpaid handset-based prices (500 MB) PPP$ GNI p.c., USD, 2011 (or latest available) Rank 4.7 5.2 10.9 6.3 6.4 4.3 11.7 7.7 26.4 16.5 17.8 13.4 26.3 22.1 22.2 11.7 23.1 13.2 17.4 3.5 16.9 35.8 15.3 44.9 13.8 25.3 28.6 30.0 7.9 17.3 26.6 7.8 11.3 40.9 31.7 13.1 23.8 14.3 7.4 41.7 10.7 22.2 35.7 16.3 41.3 11.0 18.2 26.7 33.2 56.1 16.0 27.0 20.1 26.4 36.0 8.1 27.6 15.3 24.3 15.7 85.0 10.9 48’300 48’420 78’130 35’330 46’200 12’280 35’160 35’020 80’440 60’390 49’730 20’870 45’460 48’900 53’230 15’200 46’160 16’070 23’610 2’580 21’250 31’800 12’730 88’890 12’350 30’990 42’420 45’560 8’220 15’920 29’450 4’070 11’860 76’380 37’780 7’910 25’030 5’830 5’290 40’760 5’680 17’820 38’580 11’920 45’180 3’980 7’910 12’480 15’040 43’980 4’730 12’660 8’240 10’410 18’520 2’070 10’400 6’530 9’240 4’780 48’450 4’380 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Economy Indonesia Peru Andorra Georgia Antigua & Barbuda New Zealand Bulgaria Ukraine Colombia Argentina Lebanon India Bahamas Moldova Suriname Malta Sudan Malaysia Costa Rica El Salvador South Africa Montenegro Egypt Syria Brazil Ecuador Jamaica Uzbekistan Morocco Lao P.D.R. Chile Armenia Paraguay China Mongolia Philippines Namibia Guatemala Samoa Fiji Honduras Kenya Bolivia Nicaragua Ghana Tanzania Bangladesh Nigeria Kyrgyzstan Haiti Mali Tajikistan Lesotho Dominican Rep. Angola Ethiopia Madagascar Mozambique S. Tomé & Principe Zimbabwe Niger Congo (Dem. Rep.) as % of GNI p.c. USD PPP$ GNI p.c., USD, 2011 (or latest available) 2.3 2.4 2.4 2.5 2.5 2.6 2.6 2.6 2.6 2.7 2.8 2.9 3.0 3.1 3.1 3.1 3.1 3.2 3.2 3.4 3.5 3.5 3.9 3.9 4.0 4.1 4.2 4.8 4.9 5.1 5.3 5.7 5.8 5.9 6.1 6.3 6.3 6.7 7.3 7.4 7.4 8.2 8.4 10.2 11.3 11.3 12.6 13.0 15.8 16.9 19.6 21.8 24.4 26.1 28.4 28.6 35.1 39.5 50.1 101.3 106.0 126.4 5.7 10.9 83.4 5.9 25.6 63.2 14.2 6.7 13.5 21.9 20.9 3.4 55.0 5.1 19.9 48.7 3.4 22.2 20.2 10.0 20.5 20.9 8.4 9.0 35.8 14.0 17.5 6.0 12.2 4.8 53.7 15.8 14.3 24.1 11.9 11.5 24.7 16.1 19.4 22.8 12.2 5.6 14.3 10.0 13.2 5.1 8.1 13.0 12.1 9.9 10.0 15.8 24.8 154.1 96.0 9.5 12.6 15.5 56.7 54.0 31.8 20.0 7.6 18.7 N/A 10.2 32.7 52.3 28.9 13.5 19.3 35.2 31.0 8.2 78.9 8.8 22.5 62.6 5.9 35.9 28.5 18.6 28.1 39.4 19.1 19.5 33.3 26.0 25.3 11.1 20.0 10.6 64.6 27.9 21.4 37.5 18.5 20.2 31.8 25.1 25.1 24.8 22.2 12.0 30.2 23.6 15.9 14.6 20.5 22.7 27.4 16.0 16.4 39.6 38.4 274.1 110.6 29.8 26.2 28.4 79.3 N/A 62.1 32.5 2’940 5’500 41’750 2’860 12’060 29’350 6’550 3’120 6’110 9’740 9’110 1’410 21’970 1’980 7’640 18’620 1’300 8’420 7’660 3’480 6’960 7’060 2’600 2’750 10’720 4’140 4’980 1’510 2’970 1’130 12’280 3’360 2’970 4’940 2’320 2’210 4’700 2’870 3’190 3’680 1’970 820 2’040 1’170 1’410 540 770 1’200 920 700 610 870 1’220 7’090 4’060 400 430 470 1’360 640 360 190 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ are based on World Bank data. USD exchange rates are based on IMF data. 101 Chapter 3. Measuring the cost and affordability of broadband Table 3.13: Mobile-broadband prepaid computer-based prices (1 GB), 2012 Prepaid computer-based prices (1 GB) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Economy Austria Finland Ireland Italy United States Iceland Bahrain Switzerland Kuwait France United Arab Emirates Oman Poland Sweden Estonia Kazakhstan Australia Portugal Croatia Slovakia Trinidad & Tobago Hong Kong, China Germany Sri Lanka Uruguay Peru New Zealand Albania Belarus TFYR Macedonia Barbados Mauritius Saudi Arabia Malta Belgium United Kingdom Qatar Venezuela Hungary Bahamas Egypt Russian Federation Macao, China Spain Turkey Serbia Brunei Darussalam Panama Jordan Maldives Cyprus Azerbaijan Seychelles Chile Canada Greece Argentina Antigua & Barbuda Costa Rica Indonesia Mexico Malaysia as % of GNI p.c. 0.1 0.2 0.3 0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 1.0 1.1 1.1 1.1 1.1 1.2 1.4 1.5 1.5 1.6 1.6 1.6 1.6 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.0 2.1 2.1 2.3 2.3 2.5 2.6 2.6 2.6 2.6 2.7 2.7 2.7 2.8 2.8 2.8 3.1 3.2 USD PPP$ GNI p.c., USD, 2011 (or latest available) 5.6 9.5 11.1 13.9 20.0 17.2 8.0 43.9 29.0 27.8 27.0 13.0 8.4 38.3 11.0 6.8 41.3 19.8 13.1 15.3 15.4 42.1 55.6 3.3 15.5 7.3 39.5 5.5 8.0 6.8 18.5 12.2 26.4 27.8 69.5 57.3 123.6 18.4 20.1 35.0 4.2 17.0 74.8 51.3 17.3 9.7 55.6 15.0 8.5 13.7 62.6 11.4 24.1 26.7 101.0 55.6 21.9 27.8 17.8 6.8 24.1 22.2 4.7 7.3 9.5 12.7 20.0 14.1 10.4 26.8 25.3 22.9 28.5 14.9 13.4 27.8 14.6 7.9 25.6 22.5 18.1 20.8 24.0 61.1 49.8 6.6 17.0 12.5 32.7 12.1 20.8 16.0 27.0 20.1 31.4 35.8 57.7 52.7 118.8 21.9 31.0 50.2 9.6 27.6 88.6 51.5 28.9 18.7 83.6 27.4 10.9 19.1 65.4 16.7 54.5 32.1 81.1 56.7 35.2 35.6 25.1 9.1 36.5 35.9 48’300 48’420 38’580 35’330 48’450 35’020 15’920 76’380 48’900 42’420 40’760 19’260 12’480 53’230 15’200 8’220 46’200 21’250 13’850 16’070 15’040 35’160 43’980 2’580 11’860 5’500 29’350 3’980 5’830 4’730 12’660 8’240 17’820 18’620 46’160 37’780 80’440 11’920 12’730 21’970 2’600 10’400 45’460 30’990 10’410 5’680 31’800 7’910 4’380 6’530 29’450 5’290 11’130 12’280 45’560 25’030 9’740 12’060 7’660 2’940 9’240 8’420 Prepaid computer-based prices (1 GB) Rank 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Economy Netherlands Bosnia and Herzegovina Georgia Cape Verde Bulgaria Slovenia Brazil Ukraine India Lebanon Jamaica El Salvador Tunisia Mongolia Armenia Colombia Montenegro Suriname Uzbekistan Fiji South Africa Romania Paraguay Guatemala Angola Morocco Pakistan Ghana China Sudan Bolivia Moldova Botswana Ecuador Namibia Kenya Bangladesh Nicaragua Samoa Kyrgyzstan Tajikistan Nigeria Congo Zambia Rwanda Mali Côte d'Ivoire Lesotho Senegal Yemen Afghanistan Madagascar Mozambique Haiti Togo Cambodia Dominican Rep. S. Tomé & Principe Niger Zimbabwe Sierra Leone Congo (Dem. Rep.) as % of GNI p.c. USD PPP$ GNI p.c., USD, 2011 (or latest available) 3.4 3.6 3.7 3.8 3.9 4.2 4.3 4.5 4.6 4.6 4.9 5.2 5.2 5.7 5.8 5.8 5.9 6.0 6.4 6.4 6.6 7.5 7.7 7.8 8.5 10.0 11.2 11.3 11.3 11.7 12.7 12.9 14.1 14.3 15.8 16.5 16.8 17.1 17.9 21.2 21.8 22.7 25.8 26.6 28.1 31.3 34.7 44.7 45.2 53.7 61.8 62.0 65.9 67.7 71.6 72.3 106.3 110.3 141.3 168.8 181.9 316.0 139.1 14.2 8.9 11.2 21.3 83.4 38.8 11.6 5.4 35.2 20.4 15.0 17.8 11.1 16.1 29.8 34.8 38.2 8.0 19.5 38.4 49.1 19.1 18.6 28.8 24.7 10.4 13.2 46.4 12.7 21.6 21.3 87.7 49.2 62.0 11.3 10.8 16.7 47.5 16.3 15.8 22.7 48.7 25.7 13.3 15.9 31.8 45.4 40.3 47.9 14.9 22.2 25.8 39.5 33.4 50.0 628.1 125.0 42.4 90.0 51.5 50.0 118.8 26.8 15.3 12.2 43.4 94.7 36.1 23.3 12.8 52.3 29.5 27.9 38.9 17.2 28.4 42.6 65.7 43.3 14.8 21.3 52.5 88.7 28.6 29.1 33.2 40.4 24.3 15.9 72.2 22.0 45.8 36.7 149.1 91.5 79.9 23.9 27.3 39.5 61.4 36.7 39.6 39.7 60.6 29.3 28.6 26.1 48.0 70.5 71.2 82.7 36.0 46.3 47.4 64.2 59.6 131.7 1117.5 174.6 82.9 N/A 113.6 81.4 49’730 4’780 2’860 3’540 6’550 23’610 10’720 3’120 1’410 9’110 4’980 3’480 4’070 2’320 3’360 6’110 7’060 7’640 1’510 3’680 6’960 7’910 2’970 2’870 4’060 2’970 1’120 1’410 4’940 1’300 2’040 1’980 7’480 4’140 4’700 820 770 1’170 3’190 920 870 1’200 2’270 1’160 570 610 1’100 1’220 1’070 1’070 290 430 470 700 560 830 7’090 1’360 360 640 340 190 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ are based on World Bank data. USD exchange rates are based on IMF data. 102 Measuring the Information Society 2013 Table 3.14: Mobile-broadband postpaid computer-based prices (1 GB), 2012 Postpaid computer-based prices (1 GB) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Economy Austria Iceland Finland Sweden Denmark Qatar Norway United States United Kingdom Kuwait Estonia Switzerland Belgium Romania Germany Slovenia Oman France Brunei Darussalam Hong Kong, China Latvia Macao, China Kazakhstan Greece Bahrain Netherlands Uruguay Cyprus Australia Italy United Arab Emirates Serbia Portugal Libya Trinidad & Tobago Ireland Bulgaria Spain Malta Turkey Korea (Rep.) Canada Sri Lanka Andorra Peru New Zealand Japan Belarus Slovakia TFYR Macedonia Barbados Mauritius Saudi Arabia Czech Republic Venezuela Hungary Bahamas Russian Federation Maldives Tunisia Malaysia Egypt Lithuania Azerbaijan as % of GNI p.c. 0.1 0.3 0.3 0.3 0.4 0.4 0.5 0.5 0.5 0.6 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.2 1.2 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.5 1.6 1.6 1.6 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.9 1.9 1.9 2.0 2.0 2.1 2.2 2.2 2.4 2.6 USD 5.6 9.4 13.8 15.2 18.4 27.5 35.5 20.0 16.4 25.4 8.3 42.8 27.8 4.9 27.8 15.3 13.0 30.6 23.8 27.2 9.9 37.2 6.8 20.9 13.3 41.7 10.3 25.5 41.2 33.4 39.5 5.6 20.8 12.3 15.4 41.7 7.1 33.7 20.9 11.9 23.8 52.5 3.3 54.2 7.3 39.5 61.8 8.0 22.9 6.8 18.5 12.2 26.4 28.2 18.4 20.1 35.0 17.0 11.0 7.1 15.7 4.8 24.2 11.4 PPP$ GNI p.c., USD, 2011 (or latest available) 4.7 7.7 10.6 11.1 12.7 26.4 22.4 20.0 15.1 22.1 11.0 26.1 23.1 8.9 24.9 17.4 14.9 25.2 35.8 39.5 13.8 44.0 7.9 21.2 17.3 35.6 11.2 26.6 25.6 30.4 41.7 10.7 23.7 20.2 24.0 35.7 14.5 33.8 26.8 19.8 32.1 42.2 6.6 N/A 12.5 32.6 46.2 20.8 31.2 16.0 27.0 20.1 31.4 36.0 21.9 31.0 50.2 27.6 15.3 15.6 25.3 11.0 36.9 16.7 48’300 35’020 48’420 53’230 60’390 80’440 88’890 48’450 37’780 48’900 15’200 76’380 46’160 7’910 43’980 23’610 19’260 42’420 31’800 35’160 12’350 45’460 8’220 25’030 15’920 49’730 11’860 29’450 46’200 35’330 40’760 5’680 21’250 12’320 15’040 38’580 6’550 30’990 18’620 10’410 20’870 45’560 2’580 41’750 5’500 29’350 45’180 5’830 16’070 4’730 12’660 8’240 17’820 18’520 11’920 12’730 21’970 10’400 6’530 4’070 8’420 2’600 12’280 5,290 Postpaid computer-based prices (1 GB) Rank 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 Economy Mexico Seychelles Chile Argentina Indonesia Antigua & Barbuda Panama Costa Rica Poland Colombia Georgia Jordan Bosnia and Herzegovina Jamaica Brazil Ukraine India Lebanon Mongolia Morocco Albania Moldova El Salvador Paraguay South Africa Suriname Ecuador Uzbekistan Lao P.D.R. Cape Verde Fiji Honduras Guatemala Syria Namibia Bolivia Armenia Ghana Samoa Nicaragua Philippines Bangladesh Botswana Kenya Nigeria Kyrgyzstan Tajikistan Pakistan Mali Côte d'Ivoire Lesotho Viet Nam Timor-Leste China Dominican Rep. Ethiopia Madagascar Mozambique Haiti Togo S. Tomé & Principe Zimbabwe Congo (Dem. Rep.) as % of GNI p.c. USD PPP$ GNI p.c., USD, 2011 (or latest available) 2.6 2.6 2.6 2.7 2.8 2.9 3.0 3.2 3.2 3.4 3.7 3.9 4.2 4.2 4.3 4.5 4.6 4.6 4.9 4.9 5.1 5.2 5.2 5.8 5.9 6.0 6.2 6.4 6.4 6.8 7.4 7.4 7.8 7.9 8.4 10.1 11.2 11.3 12.2 12.3 12.5 12.6 14.1 16.5 19.5 21.2 21.8 26.1 31.3 34.7 35.2 40.9 43.5 44.0 47.7 53.3 63.4 65.9 67.7 71.6 110.3 168.8 316.0 20.0 24.1 26.7 21.9 6.8 29.3 20.0 20.2 33.7 17.3 8.9 14.1 16.6 17.5 38.8 11.6 5.4 35.2 9.5 12.2 16.8 8.5 15.0 14.3 34.3 38.2 21.3 8.0 6.1 20.0 22.8 12.2 18.6 18.1 32.9 17.2 31.3 13.2 32.4 12.0 23.1 8.1 87.7 11.3 19.5 16.3 15.8 24.3 15.9 31.8 35.8 43.0 99.0 181.1 282.1 17.8 22.7 25.8 39.5 33.4 125.0 90.0 50.0 30.4 54.5 32.1 35.2 9.1 37.4 36.5 28.5 53.4 24.7 15.3 18.1 31.4 25.3 36.1 23.3 12.8 52.3 14.8 20.0 37.4 14.7 27.9 21.4 46.9 43.3 39.5 14.8 13.2 21.8 24.8 22.2 29.1 38.9 42.4 36.3 55.2 15.9 41.9 28.4 40.3 20.5 149.1 23.9 34.0 36.7 39.6 56.8 26.1 48.0 55.5 95.2 175.4 281.5 501.8 55.5 47.3 47.4 64.2 59.6 174.6 N/A 81.4 9’240 11’130 12’280 9’740 2’940 12’060 7’910 7’660 12’480 6’110 2’860 4’380 4’780 4’980 10’720 3’120 1’410 9’110 2’320 2’970 3’980 1’980 3’480 2’970 6’960 7’640 4’140 1’510 1’130 3’540 3’680 1’970 2’870 2’750 4’700 2’040 3’360 1’410 3’190 1’170 2’210 770 7’480 820 1’200 920 870 1’120 610 1’100 1’220 1’260 2’730 4’940 7’090 400 430 470 700 560 1’360 640 190 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ are based on World Bank data. USD exchange rates are based on IMF data. 103 Chapter 3. Measuring the cost and affordability of broadband operators tend to charge higher prices per unit of use. Furthermore, prepaid customers are not tied to a monthly Comparing handset-based and computerbased mobile-broadband prices subscription fee over a certain period of time and thus have the mobility to switch operators and the flexibility to adjust The two handset-based plans included in this data their data usage according to their needs and means. collection are based on a monthly consumption of 500 MB, whereas computer-based plans provide twice this Mobile broadband is an emerging market which is amount. This choice was made to reflect the typically developing fast, and price structures are also evolving more extensive use of data services on a laptop or rapidly. In this context, it is relevant to compare postpaid desktop computer. As a result, computer-based plans are and prepaid mobile-broadband prices in order to gain an necessarily more expensive on average. However, when insight into the overall pricing dynamics of these services. looking at Chart 3.14, which shows the global average in USD for all four plans, computer-based prices are very As shown in Chart 3.14, prepaid offers are always more competitive considering that they include twice the expensive on average than the corresponding postpaid amount of data. offers, irrespective of the end device used. While the difference measured as a percentage of GNI p.c. is rather This point is confirmed when comparing the price per GB small in developed countries, the difference in affordability of volume under each plan (see Chart 3.15): computer- is more significant in developing countries: for computer- based plans are cheaper on a per GB basis, with postpaid based plans, the average price for prepaid offers is 24.7 computer-based plans offering the lowest per GB price per cent of GNI p.c. compared to 18.8 per cent of GNI p.c. at 27 USD. This is partly explained by the fact that the for postpaid plans. The difference is slightly smaller for price per unit of volume tends to decrease with the total handset-based offers: postpaid offers cost an average of volume contracted, i.e. the price per GB is lower for larger 11.3 per cent of GNI p.c. in developing countries, compared data allowances, the equivalent of a volume discount. This with 15.7 per cent of GNI p.c. for prepaid plans. closely resembles the case of fixed broadband, except that Chart 3.14: Mobile-broadband prices, in USD, world, 2012 40 34.9 35 30 USD 25 27.3 24.1 21.6 20 15 10 5 0 Prepaid handsetbased (500 MB) Prepaid computerbased (1 GB) Postpaid handsetbased (500 MB) Postpaid computerbased (1 GB) Note: Simple averages. The following number of countries are included per plan: prepaid handset-based (500 MB): 126; postpaid handsetbased (500 MB): 125; prepaid computer-based (1 GB): 125; postpaid computer-based (1 GB): 127. Source: ITU. USD exchange rates are based on IMF data. 104 Measuring the Information Society 2013 Chart 3.15: Mobile-broadband prices per GB, in USD, world, 2012 Postpaid computer-based (1 GB) 27.3 Postpaid handset-based (500 MB) 43.2 Prepaid computer-based (1 GB) 34.9 48.2 Prepaid handset-based (500 MB) 0 10 20 30 40 50 60 USD per GB Note: Simple averages. Source: ITU. USD exchange rates are based on IMF data. for fixed broadband it is speed (Mbit/s) rather than data however, mobile broadband is often the sole Internet allowance which is the determining factor for prices. access method available, particularly in rural and remote areas. Therefore, it is important to compare the cost and affordability of fixed broadband and mobile broadband, 3.4 Comparison of mobile-broadband with fixed-broadband and mobile-cellular prices Comparing mobile-broadband and fixedbroadband prices which will have an impact on further service uptake and the spread of Internet access. Chart 3.16 shows average fixed- and mobile-broadband prices as a percentage of GNI p.c. Mobile-broadband prices are presented for prepaid and postpaid handset-based plans, as well as for prepaid and postpaid computerbased plans. The averages are based on 97 countries for Globally, it is estimated that there will be three times which price data on all five plans were available for 2012. as many mobile-broadband subscriptions as fixed- Fixed broadband is more expensive on average than all broadband subscriptions by end 2013. Although the four mobile-broadband plans in developing countries. two types of subscription cannot be compared on a In developed countries, a fixed-broadband subscription like-by-like basis, the high growth of mobile-broadband is also more expensive than a mobile-broadband subscriptions, particularly in developing countries subscription, with the exception of prepaid computer- (Chapter 1), testifies to the increasing role that mobile based mobile broadband. broadband is playing as a pervasive means of accessing Country-level data show that in 53 (out of 65) developing the Internet. countries fixed broadband is more expensive than each Mobile broadband frequently serves as a supplement to, of the four mobile-broadband packages. In developed rather than substitute for, fixed broadband for customers countries, fixed broadband is more expensive than each In developing countries, of the four mobile-broadband packages in 27 (out of in developed countries. 28, 29 105 Chapter 3. Measuring the cost and affordability of broadband Chart 3.16: Mobile-broadband and fixed-broadband prices, as a percentage of GNI p.c., world and by level of development, 2012 1.5 Postpaid handset-based mobile-broadband (500 MB) 6.0 8.3 Developed 1.3 7.9 Prepaid handset-based mobile-broadband (500 MB) World 11.1 Developing 1.5 9.9 Postpaid computer-based mobile-broadband (1 GB) 14.0 2.3 11.0 Prepaid computer-based mobile-broadband (1 GB) 15.2 1.9 12.5 Postpaid fixed-broadband (1 GB) 17.7 0 5 10 As % of GNI p.c. 15 20 Note: Simple averages. Averages include 97 countries for which prepaid handset-based, postpaid handset-based, prepaid computer-based and postpaid computer-based mobile-broadband as well as postpaid fixed-broadband prices were available. Source: ITU. 32) countries. However, there are qualitative differences between fixed- and mobile-broadband connections (speed, capacity, reliability) which still differentiate the two services (Box 3.4), and make them complementary rather than substitutes in those locations where fixed-broadband services are available and affordable. Box 3.4: To what extent are fixed-broadband and mobile-broadband prices and services comparable? Fixed-broadband and mobile-broadband prices are only average less expensive than prepaid offers, because operators comparable to some degree. First of all, data caps differ for the will usually offer lower prices to customers when they can count five plans presented in Chart 3.16. The handset-based mobile- on long-term revenue flows. broadband plans included in the data collection are based on 500 MB of data, whereas the computer-based mobile-broadband and the fixed-broadband plans include 1 GB of data. In addition, actual broadband speeds depend on many factors and are difficult to predict, particularly in the case of mobile broadband. Thus, speeds will differ not only between advertised and actual Even when data allowances are the same, as for the computer- speeds, but also between fixed- and mobile-broadband services. based mobile-broadband and the fixed-broadband plans, the A study by British regulator Ofcom found that mobile-broadband actual amount of data included differs. As shown in section 3.2 connections on average perform at lower actual speeds than of this chapter, the majority of fixed-broadband plans are fixed-broadband connections (Ofcom, 2011b). Even in areas with unlimited, whereas computer-based mobile-broadband plans good 3G coverage in the UK, average mobile-broadband speeds may exceed 1 GB of data allowance but are very rarely unlimited. were three times lower than average fixed-broadband speeds. Furthermore, the subscription type (prepaid and postpaid) Other quality of service parameters, such as average webpage varies between the five plans included in the comparison. While download times, were also significantly better in the case of fixed- data for prepaid and postpaid handset-based and prepaid and broadband connections. These findings confirm that significant postpaid computer-based mobile-broadband plans have been differences currently persist in terms of the real performance of collected, the fixed-broadband plans included are postpaid only. fixed broadband and mobile broadband, and this needs to be As shown in section 3.3 of this chapter, postpaid offers are on taken into account when comparing the two types of subscription. 106 Measuring the Information Society 2013 In the following section, a comparison of 1 GB postpaid are very affordable for both plans, at 1.9 per cent of GNI fixed-broadband prices and 1 GB postpaid computer-based p.c. for fixed broadband and 1.5 per cent of GNI p.c. for mobile-broadband prices will allow for a more insightful mobile broadband (see Chart 3.16). analysis of the affordability of fixed- and mobile-broadband services. Both plans are based on the same minimum The picture is more diverse when looking at the regional monthly data consumption (1 GB) and subscription type averages. The difference in affordability between the (postpaid). Furthermore, both plans are used on the same two plans is largest in Africa: a postpaid computer-based end device: a laptop or desktop computer. However, it must mobile-broadband subscription costs 44.8 per cent of be noted that in practice most fixed-broadband plans offer GNI p.c., while a postpaid fixed-broadband subscription unlimited data consumption, whereas tiered pricing plans is significantly more expensive, at 68.1 per cent of GNI (i.e. with limited data allowances) are the norm in mobile- p.c. Both plans are a lot more affordable in Europe and broadband subscriptions. the Arab States, where differences in price between the Comparing postpaid fixed-broadband and postpaid computer-based mobile-broadband prices two plans are also minimal. In the Americas, there is no difference in price in terms of GNI p.c. between fixed broadband and mobile broadband. In the CIS and Asia and the Pacific regions, against the global trend, postpaid Globally, postpaid fixed-broadband plans are more computer-based mobile broadband is on average more expensive than postpaid computer-based mobilebroadband plans. In developing countries, a fixed- expensive than postpaid fixed broadband. While the broadband subscription costs on average 17.7 per cent difference is small in the CIS, fixed broadband is somewhat of GNI p.c., while a postpaid computer-based mobile- more affordable in Asia and the Pacific, at 4.7 per cent of broadband subscription costs 14 per cent of GNI p.c. The GNI p.c. compared with 7 per cent of GNI p.c. for mobile difference is smaller in developed countries, where prices broadband (Chart 3.17). Chart 3.17: Postpaid fixed-broadband and postpaid computer-based mobile-broadband prices, as a percentage of GNI p.c., by region, 2012 1.3 1.6 Europe Postpaid computer-based mobile-broadband (1 GB) 2.3 2.5 Arab States Postpaid fixed-broadband (1 GB) 5.9 5.4 CIS 7.0 Asia & Pacific 4.7 8.0 8.0 The Americas 44.8 Africa 68.1 0 10 20 30 40 50 60 70 As % of GNI p.c. Note: Simple averages. Averages include 97 countries for which postpaid computer-based mobile-broadband as well as postpaid fixedbroadband prices were available. Source: ITU. 107 Chapter 3. Measuring the cost and affordability of broadband When comparing prices at the country level in each of the six regions, postpaid computer-based mobile broadband is less expensive than postpaid fixed broadband in the majority of countries (Table 3.15). Africa is the region that has the biggest proportion of countries where postpaid computerbased mobile-broadband prices are less expensive than fixed-broadband prices. This is in line with the fact that fixed-broadband prices in several African countries are among the world’s least affordable (see the results of the 2012 fixed-broadband prices in Table 3.2). Currently, mobile broadband is cheaper than fixed broadband in two-thirds of African countries included in the comparison, and thus constitutes a genuine alternative to fixed broadband in terms of price. In other regions, the number of countries in which postpaid computer-based mobile-broadband prices are cheaper than fixed-broadband prices is more balanced, indicating that fixed-broadband prices are still competitive in several countries. A comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband plans in a number of selected countries yields further insights into broadband pricing and service affordability. As shown in Table 3.16, most fixed-broadband plans are unlimited in terms of data allowance, whereas computer-based mobilebroadband plans are usually limited to 1 GB or 2 GB of Table 3.15: Comparison of postpaid fixedbroadband and postpaid computer-based mobile-broadband prices, percentage of countries, by region, 2012 Fixed broadband ≤ mobile broadband (%) Fixed broadband > mobile broadband (%) Africa 33 67 Arab States 40 60 Asia & Pacific 43 57 CIS 40 60 Europe 40 60 Americas 46 54 Total 41 59 Note: Includes 97 countries for which postpaid computer-based mobile-broadband as well as postpaid fixed-broadband prices were available. Source: ITU. 108 data. Price data from selected countries suggest that an unlimited data allowance does not necessarily make fixed-broadband plans more expensive than capped mobile-broadband plans. In Brazil and China, for example, the unlimited fixed-broadband plan is cheaper than the 2 GB and 1 GB of computer-based mobile-broadband plans, respectively. The same is true in France and the United States, although the difference in price is much smaller. In the Russian Federation, on the other hand, the unlimited fixed-broadband plan is more expensive than the mobile-broadband plan capped at 4 GB of data. Egypt and India are interesting examples, insofar as fixedbroadband and mobile-broadband plans both include the same amount of data (1GB in Egypt and 2GB in India). In both countries, the mobile-broadband plan is more affordable than the fixed-broadband plan, although the difference in price is relatively small in India. The same is true in Nigeria, although the fixed-broadband plan includes a higher amount of data (6 GB) compared with the 1 GB postpaid computer-based mobile-broadband plan. In contrast to this, in South Africa the 1 GB fixedbroadband plan is more affordable than the 1 GB computer-based mobile-broadband plan. Table 3.16 further shows, for the selected countries, the advertised speeds of fixed- and mobile-broadband connections, which are higher for the latter. However, as noted earlier, these are advertised speeds, and actual fixed-broadband speeds are easier to predict and generally higher than mobile-broadband speeds.30 Comparing mobile-cellular and mobilebroadband prices Following the ‘mobile miracle’and the unprecedented spread of mobile-cellular subscriptions, mobile broadband has been called upon to take the baton in the ICT development race. For instance, the potential of mobile broadband as a development enabler and its role as a catalyst to achieve sustainable development goals is a central theme of the ITU ‘m-Powering Development’ initiative.31 Key factors that made the ‘mobile miracle’ possible include the wide coverage of mobile-cellular signals, the affordability of the service and the devices, and the spread of prepaid plans. With 3G coverage increasing in leaps and bounds32 and broadband-enabled handsets becoming Measuring the Information Society 2013 Table 3.16: Comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband plans in selected countries, 2012 Country Data allowance (GB) Price (PPP$) Advertised speed (Mbit/s) Mobile 2 36.1 1 Fixed unlimited 16.6 1 Mobile 1 281.5 n/a Fixed unlimited 36.1 4 Plan Brazil China Egypt France India Nigeria Russian Federation South Africa United States Mobile 2 11.0 7.2 Fixed 2 17.2 0.256 Mobile 1 25.2 42 Fixed unlimited 24.1 8 Mobile 1 12.8 n/a Fixed 1 14.4 2 Mobile 1 34.0 7.2 Fixed 6 68.0 0.512 Mobile 4 27.6 42.6 Fixed unlimited 16.6 1.2 Mobile 1 46.9 n/a Fixed 1 38.4 n/a Mobile 1 20.0 14.8 Fixed unlimited 15.0 0.750 Source: ITU. more widely available, mobile-broadband affordability Globally, the average price of prepaid handset-based remains one of the main issues for determining to what mobile broadband is somewhat higher than the average extent the ‘mobile miracle’ can be replicated in mobile- price of prepaid mobile cellular (Chart 3.18). The price broadband services. difference is particularly marked in developing countries, 33 where prepaid handset-based mobile broadband is 40 per This section compares the price of prepaid mobile-cellular cent more expensive in terms of GNI p.c. than a low-user services (voice and SMS) with the price of prepaid handset- mobile-cellular monthly offer. In developed countries, on based mobile-broadband subscriptions (500 MB of the other hand, prepaid handset-based mobile-broadband monthly data allowance). The choice of prepaid rather than prices are even less expensive than low-user mobile-cellular postpaid plans reflects the fact that most mobile-cellular prices. This may be explained by the fact that the ITU mobile- subscriptions in the world are prepaid. Indeed, prepaid cellular sub-basket (low usage, prepaid) does not particularly plans have played a crucial role in bringing mobile-cellular fit the usage patterns of developed countries, where more services to the previously unconnected in the developing intensive use and postpaid contracts are commonplace, world. Since handset-based mobile-broadband services and thus the results overestimate the usual cost of mobile- are usually purchased as an add-on package to mobile- cellular services in some developed countries.34 However, cellular subscriptions, it is to be expected that most the sum of prepaid mobile-cellular and mobile-broadband handset-based mobile-broadband subscriptions will also prices in developed countries is on average well below be prepaid if the same uptake as mobile-cellular services the 5 per cent threshold, while in developing countries it is to be achieved. surpasses 20 per cent of the monthly GNI p.c. 109 Chapter 3. Measuring the cost and affordability of broadband Chart 3.18: Mobile-broadband and mobile-cellular prices as a percentage of GNI p.c., world and by level of development (left) and comparison (right), 2012 As % of GNI p.c. 20 15 10 Mobilebroadband, prepaid handset-based 500MB 70 13.4 Mobile-cellular sub-basket 10.0 Number of countries 25 60 Developing 50 Developed 40 30 20 10 0 5 0 9.6 1.3 2.0 Developed Developing Cheaper 7.4 World Equal to up to 2x as high 2x - 4x as high > 4x as high Prepaid handset-based mobile broadband (500MB) prices relative to mobile-cellular prices Note: Simple averages. Averages include 123 countries for which prepaid handset-based (500 MB) and prepaid mobile-cellular prices were available. Source: ITU. A more detailed analysis of price data by country shows their mobile-cellular markets to the mobile-broadband that, in three-quarters of the developed countries included arena, in order to promote sustained competition and, as a in the data collection, prepaid handset-based mobile- consequence, lower mobile-broadband prices. broadband prices are cheaper than mobile-cellular prices. This suggests that cases where mobile-cellular prices are higher than mobile-broadband prices in developed countries occur where the ITU mobile-cellular sub-basket does not effectively match the available mobile-cellular offers in the country. In about a third of the developing countries included in the data collection, prepaid handset-based mobile-broadband prices are cheaper than mobile-cellular prices. In fact, there are only a handful of developing countries where prepaid handset-based mobile-broadband services cost more than twice as much as mobile-cellular services (Chart 3.18). This suggests that in most developing countries prepaid handset-based mobile-broadband prices are aligned with 3.5 The mobile-broadband subbasket In view of the growing importance of mobile broadband for accessing the Internet – either on the go as a complement to a fixed-broadband connection, or as the only Internet access method available – there is a pressing need for a global benchmark for the cost and affordability of mobilebroadband services. This has been reflected in the work of EGTI on this subject since 2011, and further confirmed by the recommendations of the ninth and tenth World Telecommunication/ICT Indicators Meeting to include mobile broadband in the list of services for which ITU mobile-cellular prices. monitors and compares prices globally. Nevertheless, one in four developing countries included This section presents a mobile-broadband sub-basket in the comparison, including economies such as China, that groups mobile-broadband prices into a single Bangladesh, Macao (China) or Libya, have much higher benchmarking value per country, following a harmonized prepaid handset-based mobile-broadband prices than methodology that allows for international comparisons mobile-cellular prices. This highlights the challenge for across countries. The proposed sub-basket could in these economies to translate the level of competition in future be incorporated in the IPB, and aims to become a 110 Measuring the Information Society 2013 useful policy instrument, facilitating the identification of and therefore both should be taken into consideration for bottlenecks, shortcomings and best practices related to the construction of the mobile-broadband sub-basket. mobile-broadband affordability. As explained in section 3.3, handset-based mobileThe extensive 2012 ITU data collection of mobile-broadband broadband prices collected by ITU correspond to the price prices presented in this chapter makes it possible to draw of add-on packages that include a given data allowance. some evidence-based conclusions regarding the most These data packages are added to regular mobile-cellular meaningful plans to be considered when constructing a subscriptions (i.e. added to already contracted voice and mobile-broadband sub-basket. SMS services). Since the majority of regular mobile-cellular subscriptions in the world are prepaid, it is to be expected Among the 146 economies for which data on mobile- that most of these add-on data packages will also be broadband prices were available, there were fewer than 70 prepaid. This suggests that the most relevant handset-based countries with specific plans available for a 250 MB monthly prices are those corresponding to prepaid plans. allowance. For the other 76 countries, data were either not available or the closest plan was the one based on a 500 Computer-based mobile broadband, on the other hand, MB monthly allowance.35 This means that in more than is not linked to regular mobile-cellular subscriptions. In half of the countries data for a 250 MB monthly allowance this case, the user acquires a USB modem/dongle, which were not available, and in most of them it was because the includes a given data allowance, and plugs it into a closest plan included at least a 500 MB monthly allowance. computer or laptop. It is therefore a data-only connection Moreover, it is to be expected that monthly data allowances more comparable in terms of usage with that of a fixed- will increase in the future, as networks are upgraded and broadband subscription. ITU data on fixed-broadband allow for more capacity. It is thus proposed to discard the prices correspond to postpaid plans, since they are the most plans based on a 250 MB monthly data allowance: they have common. Consequently, the most relevant computer-based limited relevance at present and will most probably have mobile-broadband prices would be those corresponding even less relevance in the future. to postpaid plans. This leaves four different plans to be considered for In conclusion, the mobile-broadband sub-basket could the construction of the mobile-broadband sub-basket: be simplified to two plans: (i) prepaid handset-based, (i) prepaid handset-based, 500 MB; (ii) postpaid handset- 500 MB; and (ii) postpaid computer-based, 1 GB. based, 500 MB; (iii) prepaid computer-based, 1 GB; and (iv) This reduces complexity, but still reflects the two main postpaid computer-based, 1 GB. means of mobile-broadband access: computer-based and handset-based. Statistical analysis of the datasets confirms Handset-based and computer-based plans correspond this conclusion: if a country has relatively high/low prices to different types of usage: users accessing the Internet for prepaid handset-based and postpaid computer-based through a smartphone tend to consume less data than plans, it tends to have relatively high/low prices for postpaid users connecting their laptop to the Internet through a handset-based and prepaid computer-based plans. 36 USB key. This may be either because they mostly use lighter Moreover, this selection of mobile-broadband plans ensures services (e.g. e-mail, instant messaging or web browsing) consistency with the ICT Price Basket framework37 and or because they limit the usage of data-hungry services facilitates comparison of mobile-broadband prices with (e.g. video streaming). Cisco (2013a) estimates that a those of related ICT services (section 3.4). laptop generates seven times as much mobile-data traffic as a smartphone; OECD (2012a) considers that laptop- The proposed mobile-broadband sub-basket is calculated based mobile broadband consumes five times as much as the sum of the price of the 500 MB prepaid handset- data as handset-based mobile broadband. Evidence thus based plan and the 1GB postpaid computer-based plan as shows that handset-based and computer-based mobile- a percentage of a country’s monthly GNI p.c. divided by two broadband plans correspond to different types of usage, (Figure 3.2). The cost of each plan as a percentage of the 111 Chapter 3. Measuring the cost and affordability of broadband monthly GNI p.c. is limited to a maximum value of 100, so the with high GNI p.c. levels from Europe and the Arab States – final mobile-broadband sub-basket value may vary between including Qatar, the United Kingdom, Germany, Kuwait and a theoretical ‘zero’ (mobile broadband is for free) and 100 France. However, several countries with lower income levels, (the price of the two mobile-broadband plans is equal to, or such as Estonia, Bahrain38 or Kazakhstan, also feature in the exceeds, the monthly GNI p.c.). As in the case of the IPB, the top 20 of the mobile-broadband sub-basket, with mobile- monthly GNI p.c. is used as a proxy for the average national broadband prices below 1 per cent of monthly GNI p.c. This income. Therefore, the sub-basket value points to the relative shows that although income matters (partly owing to the fact cost of mobile broadband compared to average income, thus that it is inbuilt in the formula of the mobile-broadband sub- measuring the affordability of the service. basket), other factors such as competition and regulation may play a relevant role in making mobile broadband affordable. Table 3.17 shows the results of the mobile-broadband sub-basket ordered according to affordability of mobile- A total of 49 economies (nearly half of the total in the mobile- broadband services. It includes a total of 110 economies broadband sub-basket) have a mobile-broadband sub- for which price data for the two plans included in the basket value of ≤ 2. The number increases to 75 economies sub-basket are available. Values range from a low (i.e. very if the threshold of 5 per cent is taken as a reference. Thus, if affordable) 0.1 in Austria, to a maximum of 100 (i.e. the cost of the affordability target set by the Broadband Commission mobile-broadband is equal to or above the average income, for Digital Development (entry-level broadband services and therefore unaffordable to a majority of the population) should, by 2015, be priced at less than 5 per cent of monthly in Sao Tomé and Principe, Zimbabwe and the Democratic GNI p.c.) were applied to mobile-broadband prices, by end Republic of the Congo. 2012 almost three-quarters of the countries included in the 2012 mobile-broadband sub-basket would already meet The countries at the top of the mobile-broadband sub- this target. This suggests that mobile-broadband is already basket (i.e. those with most affordable prices) are economies playing a crucial role in making broadband access affordable. Figure 3.2: Methodology for the mobile-broadband sub-basket Prepaid handset-based 500 MB Postpaid computer-based 1 GB + National average monthly GNI p.c. National average monthly GNI p.c. (Maximum value 100) (Maximum value 100) 2 Source: ITU. 112 Mobile = broadband sub-basket Measuring the Information Society 2013 Table 3.17: Mobile-broadband sub-basket and its components, 2012 Economy Austria Qatar United Kingdom Germany Kuwait France Estonia Norway Belgium Switzerland Bahrain Italy Australia Slovenia United Arab Emirates Macao, China Kazakhstan Netherlands Portugal Uruguay Denmark Hong Kong, China Slovakia New Zealand Ireland United States Canada Cyprus Belarus Greece Hungary Spain Serbia Trinidad & Tobago Romania Brunei Darussalam Saudi Arabia Sri Lanka Malta Tunisia Venezuela Turkey TFYR Macedonia Barbados Mauritius Czech Republic Azerbaijan Bulgaria Russian Federation Maldives Poland Chile Peru Bahamas Mexico Mobilebroadband sub-basket Prepaid handsetbased prices (500 MB) as % of GNI p.c. Postpaid computerbased prices (1 GB) as % of GNI p.c. GNI p.c., USD, 2011 (or latest available) 0.1 0.4 0.4 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.2 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.7 1.7 1.8 1.8 1.8 1.9 1.9 2.0 2.0 2.0 2.3 2.4 2.5 2.5 0.1 0.4 0.3 0.4 0.7 0.5 0.7 1.0 0.7 0.8 0.5 0.5 0.5 0.8 0.8 1.0 1.0 1.0 0.8 1.0 1.8 1.4 0.8 1.0 1.3 2.1 1.3 1.7 1.1 1.8 0.9 1.6 1.8 1.7 2.2 2.1 1.3 1.5 1.8 1.0 1.4 2.0 1.7 1.8 1.8 1.8 1.1 2.6 2.0 2.0 0.8 2.0 3.2 3.0 2.5 0.1 0.4 0.5 0.8 0.6 0.9 0.7 0.5 0.7 0.7 1.0 1.1 1.1 0.8 1.2 1.0 1.0 1.0 1.2 1.0 0.4 0.9 1.7 1.6 1.3 0.5 1.4 1.0 1.7 1.0 1.9 1.3 1.2 1.2 0.7 0.9 1.8 1.5 1.3 2.1 1.9 1.4 1.7 1.8 1.8 1.8 2.6 1.3 2.0 2.0 3.2 2.6 1.6 1.9 2.6 48’300 80’440 37’780 43’980 48’900 42’420 15’200 88’890 46’160 76’380 15’920 35’330 46’200 23’610 40’760 45’460 8’220 49’730 21’250 11’860 60’390 35’160 16’070 29’350 38’580 48’450 45’560 29’450 5’830 25’030 12’730 30’990 5’680 15’040 7’910 31’800 17’820 2’580 18’620 4’070 11’920 10’410 4’730 12’660 8’240 18’520 5’290 6’550 10’400 6’530 12’480 12’280 5’500 21,970 9’240 Economy Indonesia Panama Libya Argentina Antigua & Barbuda Costa Rica Egypt Jordan Georgia Albania Ukraine Lebanon India Seychelles Brazil El Salvador Cape Verde Jamaica Colombia South Africa Moldova Mongolia Suriname Uzbekistan Fiji Ecuador Paraguay Guatemala Armenia Bolivia Namibia Philippines Ghana Botswana Honduras Kenya Morocco Pakistan Bangladesh Samoa Nicaragua Nigeria Kyrgyzstan Viet Nam Tajikistan China Mali Lesotho Dominican Rep. Haiti Madagascar Mozambique S. Tomé & Principe Zimbabwe Congo (Dem. Rep.) Mobilebroadband sub-basket 2.6 2.7 2.7 2.7 2.8 3.0 3.1 3.1 3.1 3.3 3.5 3.7 3.7 3.9 4.2 4.3 4.5 4.6 4.6 4.8 5.2 5.3 5.3 5.6 6.0 6.2 6.7 7.8 8.0 8.2 8.6 9.4 10.1 11.6 11.8 12.4 12.5 14.6 14.7 15.0 15.3 16.2 18.5 21.5 21.8 23.9 25.4 32.5 36.9 42.3 49.3 65.9 100.0 100.0 100.0 Prepaid handsetbased prices (500 MB) as % of GNI p.c. 2.3 2.3 4.1 2.7 2.8 2.8 3.9 2.3 2.5 1.5 2.6 2.8 2.9 5.2 4.0 3.4 2.1 4.9 5.8 3.8 5.2 5.7 4.7 4.8 4.5 6.3 7.7 7.8 4.8 6.4 8.8 6.3 9.0 9.0 16.1 8.2 20.0 3.1 16.8 17.9 18.3 13.0 15.8 2.0 21.8 3.8 19.6 29.8 26.1 16.9 35.1 65.9 156.5 101.3 126.4 Postpaid computerbased prices (1 GB) as % of GNI p.c. 2.8 3.0 1.2 2.7 2.9 3.2 2.2 3.9 3.7 5.1 4.5 4.6 4.6 2.6 4.3 5.2 6.8 4.2 3.4 5.9 5.2 4.9 6.0 6.4 7.4 6.2 5.8 7.8 11.2 10.1 8.4 12.5 11.3 14.1 7.4 16.5 4.9 26.1 12.6 12.2 12.3 19.5 21.2 40.9 21.8 44.0 31.3 35.2 47.7 67.7 63.4 65.9 110.3 168.8 316.0 GNI p.c., USD, 2011 (or latest available) 2’940 7’910 12’320 9’740 12’060 7’660 2’600 4’380 2’860 3’980 3’120 9’110 1’410 11’130 10’720 3’480 3’540 4’980 6’110 6’960 1’980 2’320 7’640 1’510 3’680 4’140 2’970 2’870 3’360 2’040 4’700 2’210 1’410 7’480 1’970 820 2’970 1’120 770 3’190 1’170 1’200 920 1’260 870 4’940 610 1’220 7’090 700 430 470 1’360 640 190 Source: ITU. 113 Chapter 3. Measuring the cost and affordability of broadband The link between development status and affordability of particularly in countries with relatively low mobile- mobile-broadband services is highlighted in Chart 3.19. Almost broadband penetration (below 40 per cent). This could all developed countries have a mobile-broadband sub-basket be explained by the fact that in these countries mobile- below 5 per cent, which indicates that mobile-broadband broadband is an emerging market, with high subscription services in these countries are affordable. This is also true for growth and rapidly evolving price structures. As a result, about half of developing countries included in the mobile- 2012 prices will most likely have an impact on future rather broadband sub-basket. However, there are still a significant than present mobile-broadband uptake. number of developing countries where the price of mobilebroadband services exceeds 5 per cent of the monthly GNI p.c., Moreover, the correlation between the mobile-broadband sub- which suggests that high prices in these countries may be a basket and income levels (GNI p.c.) is also weak. This suggests barrier for mobile-broadband adoption. This is particularly true that mobile-broadband affordability greatly depends on other for LDCs included in the mobile-broadband sub-basket: out variables apart from income, such as for instance regulation and of the ten countries with the least affordable prices, seven are policy initiatives dealing with licensing, spectrum availability LDCs. The LDCs with the most affordable mobile-broadband and the promotion of competition. prices are Bangladesh and Samoa, with a mobile-broadband sub-basket corresponding to 15 per cent of GNI p.c. Non-LDC However, low mobile-broadband prices are still clearly linked countries with relatively high mobile-broadband prices include to high mobile-broadband penetration: all economies with China and the Dominican Republic, despite their rather high a mobile-broadband penetration above 40 per cent have a income levels compared with countries with similar mobile- mobile-broadband sub-basket value of ≤ 2 (Chart 3.20). This broadband sub-basket values. finding confirms the importance of affordable prices for the further uptake of mobile-broadband services, and hence the Chart 3.20 shows that the relationship between price and need for monitoring tools such as the mobile-broadband sub- penetration is not as strong for mobile broadband as it is basket to show where countries stand and support evidence- for the other ICT services included in the IPB (see Chart 2.6), based policy-making related to mobile-broadband prices. Chart 3.19: Mobile-broadband sub-basket, as a percentage of GNI p.c., by level of development, number of countries, 2012 50 Number of countries 40 Developed 30 Developing 30 3 20 1 10 23 19 11 11 8 4 0 0-2 2-5 5-10 10-20 Mobile-broadband sub-basket value Source: ITU. 114 20-50 >50 Measuring the Information Society 2013 Mobile-broadband sub-basket Chart 3.20: Relationship between the mobile-broadband sub-basket and mobile-broadband penetration, 2012 100 90 Mobile-broadband sub-basket 80 70 60 50 40 30 10 8 6 4 2 0 0 20 40 60 80 100 Active mobile-broadband subscriptions per 100 inhabitants 20 10 0 0 10 20 30 40 50 60 70 Active mobile-broadband subscriptions per 100 inhabitants 80 90 100 Source: ITU. 115 Chapter 3. Measuring the cost and affordability of broadband Table 3.18: ICT Price Basket and sub-baskets, 2011 and 2012 Rank Economy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Macao, China Qatar Hong Kong, China Singapore Luxembourg Norway United Arab Emirates United States Denmark Sweden Switzerland Finland Austria Cyprus Japan Korea (Rep.) Germany Iceland Netherlands France Belgium Canada Russian Federation Oman Australia Italy Brunei Darussalam Venezuela Maldives United Kingdom Ireland Trinidad & Tobago Bahamas Bahrain Mauritius Lithuania Latvia Costa Rica Israel Malta Kazakhstan Slovenia Spain Sri Lanka Seychelles Greece Belarus Portugal Croatia Saudi Arabia Estonia Slovakia Malaysia Uruguay Poland Czech Republic Panama Azerbaijan Iran (I.R.) Lebanon Turkey New Zealand St. Kitts and Nevis Tunisia Ukraine Romania China Hungary Montenegro Egypt Mexico Chile Argentina Georgia Armenia Bosnia and Herzegovina Serbia Barbados Mongolia TFYR Macedonia Bhutan 116 IPB 2012 0.2 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.8 1.9 2.0 2.1 2.2 2.2 2.3 2.3 2.4 2.4 2.5 2.6 2.6 2.6 2.6 2.7 2.8 2.8 2.8 2.9 2.9 2.9 2.9 3.0 3.1 2011 0.2 0.4 0.4 0.4 0.5 0.5 0.5 0.6 0.6 0.6 0.7 0.6 0.7 0.7 0.8 0.8 0.9 0.8 0.8 1.0 0.9 0.9 1.0 1.0 1.1 1.0 1.1 1.4 1.1 1.0 1.1 1.2 1.2 1.2 1.3 1.1 1.2 1.2 0.9 1.3 1.9 1.4 1.6 1.6 2.4 1.4 1.2 1.5 1.5 1.2 1.6 2.2 1.7 1.9 1.7 1.9 1.9 1.8 N/A 2.4 2.1 1.8 2.1 2.3 2.2 2.3 2.0 2.3 2.6 2.6 2.6 2.4 2.7 3.1 3.9 3.0 2.9 2.6 N/A 3.9 3.4 Fixed-telephone sub-basket as a % of GNI p.c. Mobile-cellular sub-basket as a % of GNI p.c. Fixed-broadband sub-basket as a % of GNI p.c. 2012 0.2 0.1 0.5 0.2 0.4 0.5 0.1 0.4 0.6 0.6 0.5 0.8 0.7 1.0 0.8 0.4 0.8 0.7 0.8 0.8 0.9 0.8 0.5 0.8 0.9 1.0 0.5 0.2 0.7 1.1 0.9 1.2 0.9 0.4 0.8 1.4 1.1 0.7 0.8 0.9 0.5 1.0 1.3 1.6 1.0 1.2 0.3 1.4 1.3 0.9 1.0 1.4 0.8 1.2 2.1 1.9 1.4 0.6 0.1 1.4 1.6 2.2 1.2 1.8 1.4 2.0 1.2 2.4 1.4 1.4 2.5 3.4 0.6 1.0 1.1 2.6 1.5 2.1 0.6 2.3 1.0 2012 0.1 0.3 0.1 0.3 0.4 0.3 0.3 0.9 0.2 0.5 0.8 0.3 0.4 0.3 0.8 0.4 0.5 0.7 1.0 1.2 1.0 1.1 1.3 0.5 0.5 1.1 0.8 1.5 1.1 1.5 1.4 1.2 1.0 1.1 0.9 1.1 1.3 0.6 1.5 1.8 1.7 1.3 1.5 0.5 1.6 2.1 1.7 1.4 1.5 1.0 1.9 1.3 1.1 2.3 1.1 1.8 1.9 2.4 1.3 2.7 3.6 2.1 2.1 3.1 3.0 3.9 0.6 2.4 3.0 2.9 3.0 2.2 4.9 2.5 3.1 3.9 2.6 2.3 3.0 3.4 2.0 2012 0.2 0.8 0.7 0.8 0.6 0.7 1.2 0.4 0.9 0.8 0.6 0.9 1.0 0.9 0.7 1.6 1.1 1.1 0.9 0.8 0.9 1.1 1.2 1.6 1.6 1.0 1.9 1.5 1.5 0.7 1.1 1.0 1.6 2.0 1.8 1.2 1.3 2.5 1.6 1.2 1.9 1.8 1.3 2.1 1.8 1.1 2.5 1.6 1.6 2.7 1.8 2.1 3.1 1.5 1.9 1.5 2.1 2.9 4.7 2.3 1.4 2.4 3.5 2.1 2.9 1.4 5.6 2.9 3.3 3.5 2.3 2.5 3.0 5.0 4.3 2.1 4.5 4.3 5.3 3.4 6.2 2011 0.2 0.1 0.5 0.2 0.4 0.5 0.1 0.3 0.6 0.6 0.6 0.7 0.7 1.0 0.8 0.4 0.8 0.7 0.8 0.8 0.9 0.7 0.8 0.8 0.9 0.9 0.5 0.2 0.7 1.1 0.9 1.5 0.9 0.4 0.8 1.3 1.1 0.7 0.7 0.7 0.4 1.0 1.3 1.6 1.0 1.2 0.2 1.4 1.5 0.9 1.0 1.4 0.8 1.4 2.0 1.9 2.0 0.6 N/A 1.5 1.5 1.5 1.2 1.7 0.9 2.0 1.0 2.2 1.4 1.4 2.5 2.7 0.5 1.0 1.1 2.6 1.5 2.0 N/A 3.2 1.9 2011 0.1 0.3 0.1 0.3 0.4 0.3 0.3 0.9 0.2 0.5 1.1 0.3 0.4 0.3 0.8 0.4 0.9 0.7 0.8 1.5 1.0 1.2 1.1 0.5 0.8 1.1 0.7 2.4 1.1 1.3 1.2 1.1 1.0 1.1 1.0 1.0 1.3 0.5 1.5 1.8 1.8 1.3 2.2 0.5 1.8 2.1 1.2 1.4 1.5 1.0 1.9 3.0 1.3 2.3 1.2 2.3 1.5 2.0 N/A 3.3 3.4 2.1 1.5 3.0 2.6 3.5 0.5 2.7 3.0 2.9 3.0 2.4 4.8 4.5 3.1 4.2 2.8 2.0 N/A 5.1 2.0 2011 0.2 0.8 0.7 0.8 0.6 0.7 1.2 0.5 0.9 0.8 0.6 0.9 1.0 0.9 0.7 1.6 1.1 1.0 0.8 0.8 0.7 0.8 1.2 1.6 1.6 1.0 1.9 1.5 1.5 0.7 1.1 1.0 1.6 2.0 2.0 1.1 1.3 2.3 0.4 1.2 3.5 1.8 1.3 2.6 4.3 1.0 2.2 1.6 1.6 1.8 1.8 2.1 3.1 2.0 1.9 1.5 2.3 2.9 N/A 2.3 1.4 1.8 3.5 2.1 2.9 1.4 4.5 2.1 3.3 3.5 2.4 2.0 2.8 3.7 7.5 2.1 4.4 3.8 N/A 3.4 6.2 GNI p.c., USD, 2011 (or latest available year) 45’460 80’440 35’160 42’930 78’130 88’890 40’760 48’450 60’390 53’230 76’380 48’420 48’300 29’450 45’180 20’870 43’980 35’020 49’730 42’420 46’160 45’560 10’400 19’260 46’200 35’330 31’800 11’920 6’530 37’780 38’580 15’040 21’970 15’920 8’240 12’280 12’350 7’660 28’930 18’620 8’220 23’610 30’990 2’580 11’130 25’030 5’830 21’250 13’850 17’820 15’200 16’070 8’420 11’860 12’480 18’520 7’910 5’290 4’520 9’110 10’410 29’350 12’480 4’070 3’120 7’910 4’940 12’730 7’060 2’600 9’240 12’280 9’740 2’860 3’360 4’780 5’680 12’660 2’320 4’730 2’070 Measuring the Information Society 2013 Table 3.18: ICT Price Basket and sub-baskets, 2011 and 2012 (continued) Rank Economy 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 Antigua & Barbuda Suriname Algeria Peru Grenada Jordan Dominica Colombia Thailand Bulgaria India Brazil Uzbekistan Dominican Rep. Saint Lucia Ecuador Jamaica St. Vincent and the Grenadines Albania Bangladesh Botswana Indonesia El Salvador Guyana Morocco South Africa Fiji Paraguay Moldova Gabon Viet Nam Sudan Guatemala Pakistan Namibia Kyrgyzstan Cape Verde Philippines Angola Samoa Yemen Nepal Belize Bolivia Marshall Islands Swaziland Ghana Djibouti Cambodia Nicaragua Nigeria Timor-Leste Mauritania Vanuatu Kenya Uganda Senegal Tanzania Micronesia Ethiopia Côte d'Ivoire Cuba Zambia Haiti Zimbabwe Lesotho Kiribati S. Tomé & Principe Benin Solomon Islands Papua New Guinea Eritrea Mali Afghanistan Burkina Faso Togo Mozambique Madagascar Congo (Dem. Rep.) Malawi IPB 2012 3.1 3.1 3.1 3.1 3.2 3.3 3.3 3.4 3.4 3.5 3.6 4.0 4.0 4.2 4.3 4.3 4.4 4.5 4.5 4.6 4.7 4.8 4.8 5.0 5.1 5.1 5.2 5.3 5.4 5.4 5.7 6.2 6.4 7.6 8.3 8.5 8.7 8.8 8.9 9.2 10.0 10.5 10.9 11.8 12.1 12.7 15.6 16.3 16.8 18.4 19.4 19.9 21.8 23.8 24.4 25.2 26.2 26.5 26.7 28.4 30.3 35.3 36.6 37.7 37.7 39.0 39.2 39.8 41.4 42.3 44.7 48.2 48.4 49.4 51.7 53.5 55.3 57.9 79.3 83.4 2011 3.1 3.1 3.5 3.1 3.3 3.9 3.5 3.3 3.3 3.7 3.5 3.8 34.5 3.9 3.7 4.5 4.5 4.0 4.6 5.5 4.7 4.8 4.1 4.9 7.2 4.2 5.4 5.3 5.4 N/A 5.7 12.8 6.0 7.6 11.2 26.5 6.2 8.8 8.9 12.0 11.1 10.8 10.9 12.0 N/A 36.9 11.8 20.0 21.8 17.9 29.9 19.5 22.0 32.6 24.5 25.2 23.7 35.7 28.1 28.2 30.3 35.8 28.8 N/A 37.9 N/A 39.7 39.8 40.5 N/A N/A 47.6 48.4 N/A 51.6 58.4 60.3 N/A N/A N/A Fixed-telephone sub-basket as a % of GNI p.c. Mobile-cellular sub-basket as a % of GNI p.c. 2012 1.3 0.5 1.7 2.7 2.2 2.6 1.8 2.0 1.7 2.2 2.7 3.3 1.1 3.8 2.4 2.0 3.6 2.1 2.2 4.1 2.9 1.9 2.4 1.3 0.9 4.9 2.3 3.6 0.3 8.0 1.9 4.5 2.4 3.7 3.3 1.8 3.7 8.1 5.0 4.8 1.1 6.0 6.2 14.1 14.0 2.5 4.4 6.5 5.5 3.9 9.5 9.1 21.2 16.9 18.5 21.6 14.0 19.9 60.8 2.9 22.6 0.1 7.6 9.5 18.4 13.5 7.3 7.6 20.5 11.1 9.3 11.6 16.4 8.0 31.2 22.5 32.9 24.6 62.6 75.9 2012 2.5 2.2 3.8 2.8 2.4 2.1 2.6 4.4 2.9 6.4 2.9 6.7 1.9 3.4 3.9 5.0 2.5 4.8 7.8 2.5 2.1 3.2 5.1 3.7 9.4 5.6 6.9 3.6 8.0 3.5 3.9 5.2 8.3 3.7 4.1 7.4 11.1 5.7 5.9 6.8 12.5 7.7 10.2 7.0 6.8 8.2 5.6 12.4 10.8 28.5 9.8 7.2 17.5 10.5 5.5 21.2 21.9 17.2 5.6 11.4 22.0 5.8 17.1 21.7 38.6 19.4 10.3 11.7 22.2 15.7 24.7 33.0 30.5 40.3 25.7 38.1 33.1 49.3 75.2 74.2 2011 1.3 0.4 1.7 2.7 2.2 2.6 1.8 1.7 1.7 2.2 2.5 2.7 1.0 2.8 2.1 2.0 3.2 2.1 2.3 2.2 2.8 1.9 2.4 1.3 2.7 4.0 2.9 3.1 0.3 N/A 2.1 5.6 2.4 4.3 3.3 1.6 3.0 8.1 5.0 4.8 1.1 7.5 6.4 14.1 N/A 1.8 4.4 7.7 11.4 3.9 15.8 7.6 21.2 16.9 18.5 21.6 12.2 22.9 60.0 2.9 22.6 0.1 7.6 N/A 18.9 N/A 7.3 7.6 14.7 N/A N/A 9.8 16.4 N/A 30.9 30.9 34.6 N/A N/A N/A 2011 2.5 2.2 3.8 2.8 2.8 2.8 3.0 4.5 2.5 6.4 2.9 6.7 2.5 3.7 3.8 5.0 3.1 3.3 7.9 2.3 2.1 3.4 4.5 3.2 13.9 3.8 6.9 4.1 8.0 N/A 4.7 5.6 3.8 3.7 4.1 7.4 11.4 5.7 6.0 7.0 13.0 7.0 10.2 6.7 N/A 8.8 5.6 12.4 10.9 29.6 15.5 7.3 17.0 10.5 5.8 21.2 16.2 20.6 3.8 10.8 22.0 7.5 20.2 N/A 38.6 N/A 11.9 11.7 25.3 N/A N/A 33.0 30.5 N/A 25.7 44.4 46.2 N/A N/A N/A Fixed-broadband sub-basket as a % of GNI p.c. 2012 5.5 6.6 3.8 3.9 4.9 5.1 5.6 3.7 5.6 1.9 5.1 2.0 9.1 5.3 6.5 5.8 7.0 6.6 3.6 7.3 9.2 9.1 7.0 10.1 4.9 4.8 6.4 8.8 7.7 4.8 11.3 9.0 8.6 15.5 17.5 16.3 11.3 12.4 15.7 16.1 16.5 17.8 16.3 14.4 15.3 27.5 36.6 29.9 34.0 22.8 39.0 43.5 26.8 44.0 49.3 32.9 42.8 42.4 13.7 71.0 46.2 386.9 85.1 81.9 56.3 84.0 243.6 103.0 81.5 280.2 150.5 4,455.4 98.4 221.3 98.2 101.2 149.3 177.8 2,527.7 169.7 2011 5.5 6.6 4.9 3.9 4.9 6.2 5.6 3.7 5.7 2.6 5.1 2.0 184.6 5.3 5.3 6.5 7.1 6.6 3.6 12.1 9.2 9.1 5.5 10.1 4.9 4.7 6.5 8.8 7.7 N/A 10.2 27.0 11.8 14.9 26.3 70.7 4.2 12.5 15.7 24.2 19.3 17.8 16.3 15.2 N/A 318.0 25.3 39.8 43.2 20.2 58.5 43.5 27.7 70.5 49.3 32.9 42.8 63.6 20.7 71.0 46.2 386.9 58.7 N/A 56.3 N/A 243.6 203.1 81.5 N/A N/A 4,455.4 98.4 N/A 98.2 375.1 149.3 N/A N/A N/A GNI p.c., USD, 2011 (or latest available year) 12’060 7’640 4’470 5’500 7’220 4’380 7’090 6’110 4’420 6’550 1’410 10’720 1’510 5’240 6’680 4’140 4’980 6’100 3’980 770 7’480 2’940 3’480 2’900 2’970 6’960 3’680 2’970 1’980 7’980 1’260 1’300 2’870 1’120 4’700 920 3’540 2’210 4’060 3’190 1’070 540 3’690 2’040 3’910 3’300 1’410 1’270 830 1’170 1’200 2’730 1’000 2’870 820 510 1’070 540 2’900 400 1’100 5’460 1’160 700 640 1’220 2’110 1’360 780 1’110 1’480 430 610 290 570 560 470 430 190 340 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. 117 Chapter 3. Measuring the cost and affordability of broadband Table 3.19: Fixed-telephone sub-basket, 2011 and 2012 118 Rank Economy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Iran (I.R.) Cuba United Arab Emirates Qatar Venezuela Macao, China Singapore Belarus Moldova Korea (Rep.) Bahrain United States Luxembourg Suriname Russian Federation Brunei Darussalam Kazakhstan Hong Kong, China Norway Switzerland Mongolia Argentina Azerbaijan Denmark Sweden Maldives Austria Iceland Costa Rica Israel Japan Canada Malaysia Finland Germany Mauritius France Oman Netherlands Australia Ireland Malta Bahamas Saudi Arabia Belgium Morocco Slovenia Seychelles Italy Bhutan Georgia Estonia Cyprus Armenia Yemen Latvia Uzbekistan United Kingdom China St. Kitts and Nevis Uruguay Greece Trinidad & Tobago Antigua & Barbuda Guyana Spain Croatia Lebanon Lithuania Egypt Montenegro Portugal Slovakia Ukraine Panama Serbia Sri Lanka Turkey Thailand Algeria Tunisia Fixed-telephone sub-basket as % of GNI p.c. 2012 2011 0.1 N/A 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.3 0.4 0.4 0.5 0.4 0.5 0.8 0.5 0.5 0.5 0.4 0.5 0.5 0.5 0.5 0.5 0.6 0.6 N/A 0.6 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.7 0.8 0.8 0.8 0.7 0.8 0.8 0.8 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 0.7 0.9 0.9 0.9 0.9 0.9 0.9 0.9 2.7 1.0 1.0 1.0 1.0 1.0 0.9 1.0 1.9 1.0 1.0 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.1 1.1 1.2 1.0 1.2 1.2 1.2 1.4 1.2 1.2 1.2 1.5 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.5 1.4 1.5 1.4 1.3 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 0.9 1.4 2.0 1.5 1.5 1.6 1.6 1.6 1.5 1.7 1.7 1.7 1.7 1.8 1.7 Value change Relative change (%) 2011-2012 N/A N/A 0.0 -13 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.1 81 0.0 0 0.0 0 0.0 2 0.0 9 0.0 0 0.1 17 -0.4 -44 0.0 0 0.1 18 0.0 0 0.0 10 0.0 -6 N/A N/A 0.0 3 0.0 0 0.0 0 0.0 0 0.0 0 0.0 4 0.0 4 0.0 0 0.0 1 0.0 0 0.0 3 0.0 0 0.1 16 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2 0.0 0 0.0 0 0.2 23 0.0 0 0.0 0 0.1 8 -1.7 -65 0.0 0 0.0 0 0.1 6 -0.9 -49 0.0 0 0.0 1 0.0 2 0.0 0 0.0 -3 0.0 0 0.1 10 0.1 5 0.2 21 0.0 0 -0.2 -12 0.0 1 -0.3 -18 0.0 0 0.0 0 0.0 2 -0.2 -12 -0.2 -12 0.0 1 0.0 0 0.0 0 0.0 0 0.0 0 0.5 50 -0.5 -27 0.0 2 0.0 -2 0.1 5 0.0 0 0.0 0 0.1 3 Fixedtelephone sub-basket, USD 0.2 0.3 4.1 9.1 1.7 8.4 8.8 1.4 0.5 6.1 4.8 15.0 28.5 2.9 4.1 12.5 3.2 14.1 38.0 34.6 1.1 4.5 2.5 30.5 28.3 3.6 27.8 21.0 4.7 18.2 29.0 29.3 5.4 31.4 28.6 5.4 28.1 13.2 35.1 33.0 27.8 13.6 16.3 13.2 36.1 2.3 18.7 9.0 28.8 1.7 2.4 12.8 25.2 3.0 0.9 10.9 1.4 36.2 4.9 12.6 12.0 25.4 15.6 12.8 3.1 33.5 15.3 10.3 13.9 3.0 8.3 25.0 18.9 3.7 9.5 7.0 3.4 13.7 6.2 6.4 6.0 Fixedtelephone sub-basket, PPP$ 0.5 4.3 8.7 2.0 9.9 10.7 3.7 0.9 8.3 6.2 15.0 22.3 3.3 6.6 18.8 3.8 20.5 24.0 21.1 1.7 7.3 3.7 21.0 20.5 5.0 23.6 17.2 6.7 16.2 21.7 23.5 8.8 24.1 25.6 9.0 23.2 15.2 30.0 20.5 23.8 17.5 23.3 15.7 29.9 3.8 21.2 20.2 26.3 4.3 4.1 16.9 26.3 5.2 1.6 15.2 2.5 33.3 7.6 14.3 13.1 25.8 24.3 16.4 3.5 33.6 21.1 15.2 21.2 6.7 15.7 28.4 25.8 7.4 17.4 13.5 6.7 22.8 10.9 10.6 13.2 GNI p.c., USD, 2011 (or latest available) 4’520 5’460 40’760 80’440 11’920 45’460 42’930 5’830 1’980 20’870 15’920 48’450 78’130 7’640 10’400 31’800 8’220 35’160 88’890 76’380 2’320 9’740 5’290 60’390 53’230 6’530 48’300 35’020 7’660 28’930 45’180 45’560 8’420 48’420 43’980 8’240 42’420 19’260 49’730 46’200 38’580 18’620 21’970 17’820 46’160 2’970 23’610 11’130 35’330 2’070 2’860 15’200 29’450 3’360 1’070 12’350 1’510 37’780 4’940 12’480 11’860 25’030 15’040 12’060 2’900 30’990 13’850 9’110 12’280 2’600 7’060 21’250 16’070 3’120 7’910 5’680 2’580 10’410 4’420 4’470 4’070 Measuring the Information Society 2013 Table 3.19: Fixed-telephone sub-basket, 2011 and 2012 (continued) Rank Economy 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 Kyrgyzstan Dominica Czech Republic Viet Nam Indonesia Colombia Romania Ecuador Poland Barbados St. Vincent and the Grenadines New Zealand Bulgaria Grenada Albania Fiji TFYR Macedonia El Salvador Hungary Guatemala Saint Lucia Swaziland Mexico Jordan Bosnia and Herzegovina Peru India Ethiopia Botswana Namibia Brazil Chile Paraguay Jamaica Cape Verde Pakistan Dominican Rep. Nicaragua Bangladesh Ghana Sudan Samoa South Africa Angola Cambodia Nepal Belize Djibouti Kiribati Zambia S. Tomé & Principe Gabon Afghanistan Philippines Timor-Leste Papua New Guinea Nigeria Haiti Solomon Islands Eritrea Lesotho Senegal Marshall Islands Bolivia Mali Vanuatu Zimbabwe Kenya Tanzania Benin Mauritania Uganda Togo Côte d'Ivoire Madagascar Burkina Faso Mozambique Micronesia Congo (Dem. Rep.) Malawi Fixed-telephone sub-basket as % of GNI p.c. 2012 2011 1.8 1.6 1.8 1.8 1.9 1.9 1.9 2.1 1.9 1.9 2.0 1.7 2.0 2.0 2.0 2.0 2.1 2.0 2.1 2.0 2.1 2.1 2.2 1.5 2.2 2.2 2.2 2.2 2.2 2.3 2.3 2.9 2.3 3.2 2.4 2.4 2.4 2.2 2.4 2.4 2.4 2.1 2.5 1.8 2.5 2.5 2.6 2.6 2.6 2.6 2.7 2.7 2.7 2.5 2.9 2.9 2.9 2.8 3.3 3.3 3.3 2.7 3.4 2.7 3.6 3.1 3.6 3.2 3.7 3.0 3.7 4.3 3.8 2.8 3.9 3.9 4.1 2.2 4.4 4.4 4.5 5.6 4.8 4.8 4.9 4.0 5.0 5.0 5.5 11.4 6.0 7.5 6.2 6.4 6.5 7.7 7.3 7.3 7.6 7.6 7.6 7.6 8.0 N/A 8.0 N/A 8.1 8.1 9.1 7.6 9.3 N/A 9.5 15.8 9.5 N/A 11.1 N/A 11.6 9.8 13.5 N/A 14.0 12.2 14.0 N/A 14.1 14.1 16.4 16.4 16.9 16.9 18.4 18.9 18.5 18.5 19.9 22.9 20.5 14.7 21.2 21.2 21.6 21.6 22.5 30.9 22.6 22.6 24.6 N/A 31.2 30.9 32.9 34.6 60.8 60.0 62.6 N/A 75.9 N/A Value change Relative change (%) 2011-2012 0.2 0.0 0.0 -0.2 0.0 0.3 0.0 0.0 0.0 0.1 0.0 0.7 0.0 0.0 -0.1 -0.7 -0.9 0.0 0.2 0.0 0.3 0.7 0.0 0.0 0.0 0.0 0.3 0.0 0.1 0.0 0.6 0.7 0.4 0.5 0.7 -0.6 1.0 0.0 1.8 0.0 -1.1 0.0 0.9 0.0 -5.9 -1.5 -0.2 -1.2 0.0 0.0 0.0 N/A N/A 0.0 1.6 N/A -6.3 N/A N/A 1.8 N/A 1.9 N/A 0.0 0.0 0.0 -0.6 0.0 -3.0 5.9 0.0 0.0 -8.5 0.0 N/A 0.3 -1.8 0.8 N/A N/A 15 0 0 -9 0 15 0 0 2 4 0 48 0 0 -4 -23 -27 0 9 0 16 36 0 0 0 0 11 0 2 0 23 26 14 15 23 -14 38 0 82 0 -20 0 22 0 -52 -20 -3 -16 0 0 0 N/A N/A 0 21 N/A -40 N/A N/A 18 N/A 15 N/A 0 0 0 -3 0 -13 40 0 0 -27 0 N/A 1 -5 1 N/A N/A Fixedtelephone sub-basket, USD 1.4 10.7 29.1 2.0 4.8 10.0 13.0 6.9 21.6 22.0 10.9 53.4 11.9 13.4 7.5 6.9 9.1 6.9 25.3 5.8 13.4 6.8 19.2 9.4 10.4 12.3 3.2 1.0 17.9 12.8 29.8 35.1 8.8 15.0 10.8 3.5 16.6 3.8 2.6 5.2 4.9 12.7 28.3 16.9 3.8 2.7 19.2 6.9 12.9 7.4 8.6 52.9 1.9 15.0 20.8 11.5 9.5 5.6 10.3 4.1 13.8 12.5 45.8 24.0 8.3 40.4 9.8 12.6 8.9 13.4 17.6 9.2 10.5 20.7 8.8 14.8 12.9 147.0 9.9 21.5 Fixedtelephone sub-basket, PPP$ 3.1 19.1 37.1 4.5 6.4 14.3 23.5 12.9 34.1 32.2 18.7 44.2 24.4 19.3 16.5 7.5 21.6 12.8 38.9 9.0 18.0 11.2 29.2 12.1 19.6 21.2 7.6 3.0 30.4 16.5 27.8 42.2 13.2 21.8 11.8 8.1 29.7 9.1 6.6 6.3 8.4 16.4 38.7 19.5 10.0 5.6 31.2 13.1 18.5 8.4 12.1 76.0 4.6 26.2 36.9 16.8 16.5 9.0 19.9 5.1 21.4 22.1 N/A 50.8 13.7 61.0 N/A 26.8 25.7 27.1 39.4 27.8 18.7 31.3 18.3 32.4 23.6 177.3 16.1 53.6 GNI p.c., USD, 2011 (or latest available) 920 7’090 18’520 1’260 2’940 6’110 7’910 4’140 12’480 12’660 6’100 29’350 6’550 7’220 3’980 3’680 4’730 3’480 12’730 2’870 6’680 3’300 9’240 4’380 4’780 5’500 1’410 400 7’480 4’700 10’720 12’280 2’970 4’980 3’540 1’120 5’240 1’170 770 1’410 1’300 3’190 6’960 4’060 830 540 3’690 1’270 2’110 1’160 1’360 7’980 290 2’210 2’730 1’480 1’200 700 1’110 430 1’220 1’070 3’910 2’040 610 2’870 640 820 540 780 1’000 510 560 1’100 430 570 470 2’900 190 340 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. 119 Chapter 3. Measuring the cost and affordability of broadband Table 3.20: Mobile-cellular sub-basket, 2011 and 2012 120 Rank Economy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Hong Kong, China Macao, China Denmark Singapore United Arab Emirates Qatar Norway Finland Cyprus Austria Luxembourg Korea (Rep.) Sweden Sri Lanka Germany Australia Oman China Costa Rica Iceland Brunei Darussalam Switzerland Japan United States Mauritius Saudi Arabia Bahamas Belgium Netherlands Malaysia Lithuania Canada Italy Poland Maldives Bahrain France Trinidad & Tobago Slovenia Russian Federation Latvia Slovakia Iran (I.R.) Portugal Ireland Israel Venezuela United Kingdom Croatia Spain Seychelles Kazakhstan Belarus Czech Republic Malta Uzbekistan Panama Estonia Bhutan Greece Botswana New Zealand St. Kitts and Nevis Jordan Chile Suriname Uruguay Barbados Azerbaijan Hungary Grenada Antigua & Barbuda Georgia Jamaica Bangladesh Dominica Serbia Lebanon Peru Thailand Egypt Mobile-cellular sub-basket as % of GNI p.c. 2012 2011 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.9 0.5 0.8 0.5 0.5 0.6 0.5 0.6 0.5 0.7 0.7 0.8 0.7 0.8 1.1 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.8 1.1 1.3 1.1 1.0 1.1 1.2 1.1 1.1 1.1 1.2 1.1 1.1 1.1 1.1 1.2 1.5 1.2 1.1 1.3 1.3 1.3 1.1 1.3 1.3 1.3 3.0 1.3 N/A 1.4 1.4 1.4 1.2 1.5 1.5 1.5 2.4 1.5 1.3 1.5 1.5 1.5 2.2 1.6 1.8 1.7 1.8 1.7 1.2 1.8 2.3 1.8 1.8 1.9 2.5 1.9 1.5 1.9 1.9 2.0 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 1.5 2.1 2.8 2.2 2.4 2.2 2.2 2.3 2.3 2.3 2.0 2.4 2.0 2.4 2.7 2.4 2.8 2.5 2.5 2.5 4.5 2.5 3.1 2.5 2.3 2.6 3.0 2.6 2.8 2.7 3.3 2.8 2.8 2.9 2.5 2.9 2.9 Value change Relative change (%) 2011-2012 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.4 -0.3 0.0 0.1 0.0 0.1 0.0 -0.2 0.0 0.0 -0.1 0.0 0.0 0.0 0.2 -0.3 0.1 -0.1 0.0 -0.2 0.0 0.0 -0.3 0.1 0.0 0.2 0.0 -1.7 N/A 0.0 0.2 0.0 -0.9 0.3 0.0 -0.7 -0.1 -0.1 0.6 -0.6 0.0 -0.6 0.5 0.0 0.0 0.0 0.0 0.0 0.7 -0.7 -0.2 0.0 0.0 0.3 0.3 -0.3 -0.4 0.0 -2.0 -0.6 0.2 -0.4 -0.1 -0.6 0.0 0.4 0.0 0 0 0 0 0 0 0 0 0 3 1 0 0 0 -43 -35 0 16 7 15 7 -23 0 0 -8 0 0 0 24 -20 6 -12 0 -13 0 0 -19 12 -1 17 -1 -57 N/A 3 17 0 -38 21 2 -30 -8 -7 47 -24 0 -23 31 0 0 0 0 0 46 -25 -8 0 0 14 16 -13 -14 0 -44 -19 10 -13 -5 -17 0 17 0 Mobilecellular sub-basket, USD 1.8 5.7 10.3 9.3 9.1 18.7 25.2 13.8 8.4 14.7 27.7 7.4 20.6 1.1 18.9 20.3 8.7 2.3 3.8 21.9 20.8 51.3 30.7 35.6 6.5 14.1 17.5 39.7 43.5 7.4 10.8 40.8 31.9 11.3 6.0 15.0 42.2 15.1 25.1 11.1 13.3 17.5 5.0 25.3 46.0 36.2 14.9 47.8 17.6 39.9 15.3 11.3 8.4 27.7 28.2 2.4 12.6 24.6 3.5 43.3 13.0 51.6 22.1 7.8 22.8 14.2 22.4 24.6 10.4 25.1 14.7 25.3 6.0 10.5 1.6 15.4 12.5 20.9 12.8 10.6 6.3 Mobilecellular sub-basket, PPP$ 2.6 6.7 7.1 11.3 9.6 18.0 15.9 10.7 8.8 12.5 21.6 10.0 15.0 2.2 16.9 12.6 10.0 3.5 5.3 17.9 31.3 31.3 22.9 35.6 10.8 16.8 25.1 33.0 37.1 11.9 16.5 32.7 29.0 17.8 8.4 19.6 34.8 23.4 28.5 18.1 18.5 23.9 13.7 28.7 39.4 32.2 17.7 44.0 24.4 40.1 34.5 13.3 21.6 35.3 36.2 4.4 23.0 32.6 9.0 44.1 22.1 42.7 25.1 10.0 27.4 16.1 24.5 36.0 15.3 38.6 21.1 32.4 10.3 15.2 4.1 27.4 24.1 31.0 21.9 18.5 14.2 GNI p.c., USD, 2011 (or latest available) 35’160 45’460 60’390 42’930 40’760 80’440 88’890 48’420 29’450 48’300 78’130 20’870 53’230 2’580 43’980 46’200 19’260 4’940 7’660 35’020 31’800 76’380 45’180 48’450 8’240 17’820 21’970 46’160 49’730 8’420 12’280 45’560 35’330 12’480 6’530 15’920 42’420 15’040 23’610 10’400 12’350 16’070 4’520 21’250 38’580 28’930 11’920 37’780 13’850 30’990 11’130 8’220 5’830 18’520 18’620 1’510 7’910 15’200 2’070 25’030 7’480 29’350 12’480 4’380 12’280 7’640 11’860 12’660 5’290 12’730 7’220 12’060 2’860 4’980 770 7’090 5’680 9’110 5’500 4’420 2’600 Measuring the Information Society 2013 Table 3.20: Mobile-cellular sub-basket, 2011 and 2012 (continued) Rank Economy 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 India Mongolia Montenegro Ukraine Mexico Tunisia Armenia Indonesia TFYR Macedonia Dominican Rep. Gabon Paraguay Turkey Pakistan Guyana Algeria Viet Nam Bosnia and Herzegovina Saint Lucia Romania Namibia Colombia St. Vincent and the Grenadines Argentina Ecuador El Salvador Sudan Kenya South Africa Micronesia Ghana Philippines Cuba Angola Bulgaria Brazil Marshall Islands Samoa Fiji Bolivia Timor-Leste Kyrgyzstan Nepal Albania Moldova Swaziland Guatemala Morocco Nigeria Belize Kiribati Vanuatu Cambodia Cape Verde Ethiopia S. Tomé & Principe Djibouti Yemen Solomon Islands Zambia Tanzania Mauritania Lesotho Uganda Haiti Senegal Côte d'Ivoire Benin Papua New Guinea Burkina Faso Nicaragua Mali Eritrea Mozambique Togo Zimbabwe Afghanistan Madagascar Malawi Congo (Dem. Rep.) Mobile-cellular sub-basket as % of GNI p.c. 2012 2011 2.9 2.9 3.0 N/A 3.0 3.0 3.0 2.6 3.0 3.0 3.1 3.0 3.1 3.1 3.2 3.4 3.4 5.1 3.4 3.7 3.5 N/A 3.6 4.1 3.6 3.4 3.7 3.7 3.7 3.2 3.8 3.8 3.9 4.7 3.9 4.2 3.9 3.8 3.9 3.5 4.1 4.1 4.4 4.5 4.8 3.3 4.9 4.8 5.0 5.0 5.1 4.5 5.2 5.6 5.5 5.8 5.6 3.8 5.6 3.8 5.6 5.6 5.7 5.7 5.8 7.5 5.9 6.0 6.4 6.4 6.7 6.7 6.8 N/A 6.8 7.0 6.9 6.9 7.0 6.7 7.2 7.3 7.4 7.4 7.7 7.0 7.8 7.9 8.0 8.0 8.2 8.8 8.3 3.8 9.4 13.9 9.8 15.5 10.2 10.2 10.3 11.9 10.5 10.5 10.8 10.9 11.1 11.4 11.4 10.8 11.7 11.7 12.4 12.4 12.5 13.0 15.7 N/A 17.1 20.2 17.2 20.6 17.5 17.0 19.4 N/A 21.2 21.2 21.7 N/A 21.9 16.2 22.0 22.0 22.2 25.3 24.7 N/A 25.7 25.7 28.5 29.6 30.5 30.5 33.0 33.0 33.1 46.2 38.1 44.4 38.6 38.6 40.3 N/A 49.3 N/A 74.2 N/A 75.2 N/A Value change Relative change (%) 2011-2012 0.0 N/A 0.0 0.4 0.0 0.1 0.0 -0.2 -1.7 -0.3 N/A -0.5 0.2 0.0 0.5 0.0 -0.8 -0.4 0.1 0.4 0.0 0.0 1.5 0.1 0.0 0.6 -0.4 -0.4 1.8 1.9 0.0 0.0 -1.7 -0.1 0.0 0.0 N/A -0.2 0.0 0.3 -0.1 0.0 0.7 -0.1 0.0 -0.7 4.5 -4.6 -5.8 0.0 -1.6 0.0 -0.1 -0.2 0.5 0.0 0.0 -0.5 N/A -3.1 -3.4 0.6 N/A 0.0 N/A 5.6 0.0 -3.1 N/A 0.0 -1.1 0.0 0.0 -13.1 -6.2 0.0 N/A N/A N/A N/A 0 N/A 0 14 0 5 0 -5 -34 -8 N/A -12 5 0 16 0 -17 -8 2 11 0 -1 46 1 0 12 -8 -7 46 50 0 0 -22 -1 0 0 N/A -3 0 4 -2 0 10 -1 0 -8 117 -33 -37 0 -13 0 -1 -2 5 0 0 -4 N/A -16 -16 4 N/A 0 N/A 35 0 -12 N/A 0 -4 0 0 -28 -14 0 N/A N/A N/A N/A Mobilecellular sub-basket, USD 3.5 5.7 17.5 7.8 23.4 10.6 8.8 7.9 13.3 14.9 23.3 8.8 31.4 3.5 9.0 14.1 4.1 15.4 21.6 25.7 16.0 22.7 24.6 39.4 17.1 14.7 5.6 3.7 32.6 13.6 6.6 10.5 26.5 20.0 34.8 60.2 22.2 18.1 21.1 11.8 16.3 5.7 3.5 25.9 13.2 22.5 19.8 23.2 9.8 31.3 18.1 25.1 7.5 32.9 3.8 13.2 13.2 11.1 14.5 16.5 7.7 14.6 19.8 9.0 12.6 19.5 20.1 14.4 30.4 12.2 27.8 15.5 11.8 13.0 17.8 20.6 9.7 17.7 21.0 11.9 Mobilecellular sub-basket, PPP$ 8.3 8.9 33.0 15.6 35.5 23.2 15.5 10.6 31.5 26.7 33.4 13.2 52.3 8.1 10.3 23.5 9.0 29.0 29.0 46.3 20.7 32.4 42.2 63.4 31.8 27.4 9.8 7.9 44.6 16.4 8.0 18.3 N/A 23.1 71.0 56.0 N/A 23.4 23.0 25.1 28.8 12.8 7.2 57.4 22.8 36.8 30.9 37.9 17.0 50.9 26.0 37.9 19.7 35.7 11.9 18.5 25.1 19.2 28.1 18.8 22.3 32.7 30.6 27.2 20.5 34.5 30.4 29.3 44.4 26.7 65.7 25.5 14.4 23.8 31.7 N/A 23.5 36.8 52.3 19.4 GNI p.c., USD, 2011 (or latest available) 1’410 2’320 7’060 3’120 9’240 4’070 3’360 2’940 4’730 5’240 7’980 2’970 10’410 1’120 2’900 4’470 1’260 4’780 6’680 7’910 4’700 6’110 6’100 9’740 4’140 3’480 1’300 820 6’960 2’900 1’410 2’210 5’460 4’060 6’550 10’720 3’910 3’190 3’680 2’040 2’730 920 540 3’980 1’980 3’300 2’870 2’970 1’200 3’690 2’110 2’870 830 3’540 400 1’360 1’270 1’070 1’110 1’160 540 1’000 1’220 510 700 1’070 1’100 780 1’480 570 1’170 610 430 470 560 640 290 430 340 190 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. 121 Chapter 3. Measuring the cost and affordability of broadband Table 3.21: Fixed-broadband sub-basket, 2011 and 2012 122 Rank Economy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Macao, China United States Switzerland Luxembourg United Kingdom Japan Norway Hong Kong, China Qatar France Sweden Singapore Netherlands Cyprus Belgium Denmark Finland Italy Trinidad & Tobago Austria Canada Ireland Iceland Germany Greece Lithuania Russian Federation United Arab Emirates Malta Spain Latvia Turkey Romania Czech Republic Uruguay Maldives Venezuela Korea (Rep.) Israel Australia Oman Bahamas Croatia Portugal Seychelles Estonia Mauritius Slovenia Poland Kazakhstan Bulgaria Brunei Darussalam Brazil Bahrain Slovakia Tunisia Bosnia and Herzegovina Sri Lanka Panama Mexico Lebanon New Zealand Belarus Costa Rica Chile Saudi Arabia Azerbaijan Ukraine Hungary Argentina Malaysia Montenegro TFYR Macedonia Egypt St. Kitts and Nevis Albania Colombia Algeria Peru Barbados Armenia Fixed-broadband sub-basket as % of GNI p.c. 2012 2011 0.2 0.2 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.9 0.8 0.9 0.9 0.9 0.7 0.9 0.9 0.9 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.1 0.8 1.1 1.1 1.1 1.0 1.1 1.1 1.1 1.0 1.2 1.1 1.2 1.2 1.2 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.4 1.5 1.5 1.5 2.0 1.5 1.5 1.5 1.5 1.6 1.6 1.6 0.4 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.8 4.3 1.8 1.8 1.8 2.0 1.8 1.8 1.9 1.9 1.9 3.5 1.9 2.6 1.9 1.9 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.6 2.1 2.3 2.3 2.4 2.3 2.3 2.4 1.8 2.5 2.2 2.5 2.3 2.5 2.0 2.7 1.8 2.9 2.9 2.9 2.9 2.9 2.1 3.0 2.8 3.1 3.1 3.3 3.3 3.4 3.4 3.5 3.5 3.5 3.5 3.6 3.6 3.7 3.7 3.8 4.9 3.9 3.9 4.3 3.8 4.3 7.5 Value change Relative change (%) 2011-2012 0.0 -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.3 0.0 0.1 0.0 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.5 0.0 0.0 0.0 1.2 0.0 0.0 0.0 0.0 0.0 -2.6 0.0 -0.3 0.0 0.0 -1.6 -0.7 0.0 0.0 0.0 0.0 0.0 0.0 -0.5 -0.2 -0.1 0.0 0.6 0.2 0.2 0.5 0.9 0.0 0.0 0.8 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -1.1 0.0 0.5 -3.2 -7 -25 0 0 0 0 0 2 0 0 0 0 2 0 30 0 0 0 0 0 31 0 12 0 17 11 0 0 0 3 -1 0 0 0 -26 0 0 0 320 0 0 0 2 0 -59 0 -13 0 0 -45 -26 0 0 0 0 0 0 -18 -7 -5 -1 34 10 9 25 49 0 0 37 5 0 0 0 0 0 0 0 -23 0 12 -42 Fixedbroadband sub-basket, USD 7.9 15.0 38.3 40.3 20.8 26.6 53.3 21.6 54.9 29.2 36.8 30.0 35.4 21.9 34.7 46.4 37.4 28.0 12.3 41.6 40.4 34.8 31.8 41.7 23.7 12.1 10.2 40.6 19.3 33.5 13.8 12.5 9.5 22.6 14.9 8.2 15.4 27.1 38.3 61.9 26.0 30.0 19.0 29.2 16.3 22.2 12.2 36.2 19.9 13.2 10.5 51.7 17.8 26.6 27.6 7.0 8.3 4.5 14.0 17.6 17.6 59.2 11.9 15.8 25.8 39.7 12.7 7.5 31.0 24.3 21.6 19.5 13.5 7.6 36.7 11.9 18.7 14.1 18.0 45.2 12.1 Fixedbroadband sub-basket, PPP$ 9.3 15.0 23.4 31.5 19.2 19.9 33.7 31.3 52.8 24.1 26.7 36.6 30.2 22.9 28.8 31.8 28.8 25.5 19.2 35.3 32.4 29.8 26.1 37.3 24.2 18.4 16.6 42.9 24.8 33.6 19.1 20.8 17.2 28.8 16.3 11.5 18.3 36.5 34.0 38.4 29.8 43.0 26.2 33.1 36.7 29.5 20.1 41.0 31.5 15.4 21.5 77.6 16.6 34.6 37.6 15.4 15.7 8.9 25.5 26.7 26.1 49.0 30.9 22.3 31.1 47.3 18.6 15.1 47.8 39.1 34.8 36.8 32.1 17.2 41.6 26.4 26.7 23.4 30.9 66.1 21.3 GNI p.c., USD, 2011 (or latest available) 45’460 48’450 76’380 78’130 37’780 45’180 88’890 35’160 80’440 42’420 53’230 42’930 49’730 29’450 46’160 60’390 48’420 35’330 15’040 48’300 45’560 38’580 35’020 43’980 25’030 12’280 10’400 40’760 18’620 30’990 12’350 10’410 7’910 18’520 11’860 6’530 11’920 20’870 28’930 46’200 19’260 21’970 13’850 21’250 11’130 15’200 8’240 23’610 12’480 8’220 6’550 31’800 10’720 15’920 16’070 4’070 4’780 2’580 7’910 9’240 9’110 29’350 5’830 7’660 12’280 17’820 5’290 3’120 12’730 9’740 8’420 7’060 4’730 2’600 12’480 3’980 6’110 4’470 5’500 12’660 3’360 Measuring the Information Society 2013 Table 3.21: Fixed-broadband sub-basket, 2011 and 2012 (continued) Rank Economy 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 Serbia Iran (I.R.) Gabon South Africa Grenada Morocco Georgia Jordan India Mongolia Dominican Rep. Antigua & Barbuda Dominica Thailand China Ecuador Bhutan Fiji Saint Lucia Suriname St. Vincent and the Grenadines El Salvador Jamaica Bangladesh Moldova Guatemala Paraguay Sudan Indonesia Uzbekistan Botswana Guyana Viet Nam Cape Verde Philippines Micronesia Bolivia Marshall Islands Pakistan Angola Samoa Belize Kyrgyzstan Yemen Namibia Nepal Nicaragua Mauritania Swaziland Djibouti Uganda Cambodia Ghana Nigeria Tanzania Senegal Timor-Leste Vanuatu Côte d'Ivoire Kenya Zimbabwe Ethiopia Benin Haiti Lesotho Zambia Burkina Faso Mali Togo S. Tomé & Principe Mozambique Papua New Guinea Malawi Madagascar Afghanistan Kiribati Solomon Islands Cuba Congo (Dem. Rep.) Eritrea Fixed-broadband sub-basket as % of GNI p.c. 2012 2011 4.4 4.5 4.7 N/A 4.8 N/A 4.8 4.7 4.9 4.9 4.9 4.9 5.0 3.7 5.1 6.2 5.1 5.1 5.3 N/A 5.3 5.3 5.5 5.5 5.6 5.6 5.6 5.7 5.6 4.5 5.8 6.5 6.2 6.2 6.4 6.5 6.5 5.3 6.6 6.6 6.6 6.6 7.0 5.5 7.0 7.1 7.3 12.1 7.7 7.7 8.6 11.8 8.8 8.8 9.0 27.0 9.1 9.1 9.1 184.6 9.2 9.2 10.1 10.1 11.3 10.2 11.3 4.2 12.4 12.5 13.7 20.7 14.4 15.2 15.3 N/A 15.5 14.9 15.7 15.7 16.1 24.2 16.3 16.3 16.3 70.7 16.5 19.3 17.5 26.3 17.8 17.8 22.8 20.2 26.8 27.7 27.5 318.0 29.9 39.8 32.9 32.9 34.0 43.2 36.6 25.3 39.0 58.5 42.4 63.6 42.8 42.8 43.5 43.5 44.0 70.5 46.2 46.2 49.3 49.3 56.3 56.3 71.0 71.0 81.5 81.5 81.9 N/A 84.0 N/A 85.1 58.7 98.2 98.2 98.4 98.4 101.2 375.1 103.0 203.1 149.3 149.3 150.5 N/A 169.7 N/A 177.8 N/A 221.3 N/A 243.6 243.6 280.2 N/A 386.9 386.9 2’527.7 N/A 4’455.4 4’455.4 Value change Relative change (%) 2011-2012 0.1 N/A N/A 0.1 0.0 0.0 1.2 -1.1 0.0 N/A 0.0 0.0 0.0 -0.1 1.1 -0.7 0.0 -0.1 1.2 0.0 0.0 1.6 -0.1 -4.8 0.0 -3.2 0.0 -18.0 0.0 -175.5 0.0 0.0 1.0 7.1 -0.1 -7.0 -0.8 N/A 0.6 0.0 -8.1 0.0 -54.4 -2.8 -8.8 0.0 2.5 -1.0 -290.4 -10.0 0.0 -9.2 11.3 -19.5 -21.2 0.0 0.0 -26.5 0.0 0.0 0.0 0.0 0.0 N/A N/A 26.4 0.0 0.0 -273.9 -100.1 0.0 N/A N/A N/A N/A 0.0 N/A 0.0 N/A 0.0 2 N/A N/A 3 0 0 33 -18 0 N/A 0 0 0 -2 25 -11 0 -2 24 0 0 29 -1 -40 0 -27 0 -67 0 -95 0 0 10 167 -1 -34 -5 N/A 4 0 -34 0 -77 -14 -33 0 13 -4 -91 -25 0 -21 44 -33 -33 0 0 -38 0 0 0 0 0 N/A N/A 45 0 0 -73 -49 0 N/A N/A N/A N/A 0 N/A 0 N/A 0 Fixedbroadband sub-basket, USD 21.2 17.8 31.8 28.1 29.4 12.2 11.9 18.7 6.0 10.3 23.3 54.9 33.0 20.7 23.2 20.2 10.7 19.5 36.2 41.9 33.6 20.3 29.2 4.7 12.8 20.6 21.8 9.7 22.2 11.5 57.3 24.5 11.8 33.3 22.9 33.0 24.5 50.0 14.5 53.2 42.7 50.0 12.5 14.7 68.7 8.0 22.2 22.3 75.7 31.6 14.0 23.5 43.0 39.0 19.1 38.1 99.0 105.2 42.4 33.7 30.0 23.7 53.0 47.8 85.4 82.3 46.6 50.0 47.2 116.8 58.5 185.6 48.1 63.7 53.5 428.3 259.2 1’760.4 400.2 1’596.5 Fixedbroadband sub-basket, PPP$ 40.8 48.6 45.7 38.4 42.2 20.0 20.4 24.0 14.4 16.0 41.6 70.3 58.6 36.2 36.1 37.4 27.2 21.3 48.5 47.4 57.8 37.8 42.2 11.8 22.0 32.1 32.6 16.9 29.7 21.2 97.4 28.2 26.2 36.2 39.9 39.8 51.9 N/A 33.8 61.3 55.3 81.3 28.2 25.4 88.6 16.6 52.5 49.8 124.0 60.2 42.2 62.0 51.6 68.0 54.9 67.5 175.4 158.7 64.0 71.6 N/A 74.0 107.6 77.7 132.4 93.7 101.7 82.2 84.3 163.1 107.4 271.1 119.7 132.7 129.0 615.5 502.6 N/A 650.9 1’951.7 GNI p.c., USD, 2011 (or latest available) 5’680 4’520 7’980 6’960 7’220 2’970 2’860 4’380 1’410 2’320 5’240 12’060 7’090 4’420 4’940 4’140 2’070 3’680 6’680 7’640 6’100 3’480 4’980 770 1’980 2’870 2’970 1’300 2’940 1’510 7’480 2’900 1’260 3’540 2’210 2’900 2’040 3’910 1’120 4’060 3’190 3’690 920 1’070 4’700 540 1’170 1’000 3’300 1’270 510 830 1’410 1’200 540 1’070 2’730 2’870 1’100 820 640 400 780 700 1’220 1’160 570 610 560 1’360 470 1’480 340 430 290 2’110 1’110 5’460 190 430 Note: N/A: Not available. Source: ITU. GNI p.c. and PPP$ values are based on World Bank data. 123 Chapter 3. Measuring the cost and affordability of broadband Endnotes The conclusions and recommendations of the tenth World Telecommunication/ICT Indicators Meeting are available at: http://www.itu.int/en/ITU-D/Statistics/Documents/events/wtim2012/wtim2012_037_E_doc.pdf. 1 For more details on the standards agreed by the ITU Radiocommunication Assembly for next-generation mobile technologies – IMT-Advanced – see http://www.itu.int/net/pressoffice/press_releases/2012/02.aspx. 2 2012 fixed-broadband prices from Lao P.D.R. and Rwanda refer to 2011. 3 Countries where an increase in both data allowances and speeds from 2011 to 2012 was reflected in an increase in fixed-broadband prices include Canada, Belgium and Hungary. 4 See http://www22.verizon.com/home/highspeedinternet/#plans. 5 In Romania, most fixed (wired)-broadband subscriptions correspond to FTTB/FTTC/FTTN plus coaxial cable to reach the premises. In the Republic of Korea, FTTH is the dominant fixed (wired)-broadband technology. 6 See endnote 6. 7 The median rather than the average is used for benchmarking prices per unit of speed because the median screens outliers, which in this case could greatly alter the results. For instance, if a given country has a very high price per Mbit/s, it will have a significant impact on the result of the average, but it will not directly affect the result of the median. 8 Entry-level fixed-broadband plans are based on a minimum speed of 256 kbit/s, and a minimum monthly data usage of 1 GB. See Annex 2 for more details on the rules applied to the collection of fixed-broadband prices. 9 References to income levels are based on the World Bank classification, see http://data.worldbank.org/about/country-classifications/country-and-lending-groups. 10 See Annex 2 for more details on the different methods of presenting prices used in this publication. 11 For example, if country A and country B have the same price in USD for any given ICT service, but in country A prices of other products are in general cheaper (in USD), then applying PPP exchange rates to the ICT service price in country A will make this service more expensive. That is because, compared to country B, in country A the same amount of USD (exchanged into national currency at market exchange rates) can buy more products or services. Therefore, the ICT service in country A is more expensive in terms of what could be bought with that amount in each country. The International Comparison Program (ICP) is the major global initiative to produce internationally comparable price levels. It is overseen by a Global Office housed in the World Bank and is implemented through the national statistical offices of more than 110 countries. Together with the OECD/Eurostat PPP data, it provides PPP data for all countries in the ICT Price Basket, except for Cuba and Zimbabwe. For more information on PPP methodology and data, see http://siteresources.worldbank.org/ICPEXT/Resources/ICP_2011.html. 12 See http://wacscable.com/aboutus.jsp and http://www.ace-submarinecable.com/ace/default/EN/all/ace_en/ace_goes_live.htm. 13 See http://www.ace-submarinecable.com/ace/media/ace_en/UPL8278106536144867809_PR_Orange_ACE_EN_191212.pdf. 14 See http://www.antel.com.uy/antel/personas-y-hogares/internet/planes/adsl/universal-hogares-prepago. 15 See http://www.skmm.gov.my/Sectors/Broadband/National-Broadband-Initiative.aspx. 16 For more information on this initiative, which is coordinated by the Malaysian Communications and Multimedia Commission, see http://www.skmm.gov.my/skmmgovmy/media/General/pdf/Press-Release-PKB-GMBO.pdf. 17 For more information on the Malaysian 1 Million Netbooks initiative, see http://www.skmm.gov.my/skmmgovmy/files/attachments/PR_1_Million_Malaysia_Netbooks_300710.pdf. 18 For more information on the Intel World Ahead Program, see Featured Insight 18 in ITU (2012) and http://www.intel.com/content/www/us/en/world-ahead/intel-world-ahead-program-connectivity.html. 19 See http://ec.europa.eu/digital-agenda/en/pillar-4-fast-and-ultra-fast-internet-access. 20 Data for fixed-telephone, mobile-cellular and fixed-broadband services have been collected since 2008 through the ITU ICT Price Basket Questionnaire, which is sent out annually to all ITU Member States/national statistical contacts. In 2012, the collection of mobile-broadband services was included. 21 The Expert Group on Telecommunication/ICT Indicators (EGTI) was created in May 2009 with the mandate to revise the list of ITU supply-side indicators (i.e. data collected from operators), as well as to discuss outstanding methodological issues and new indicators. EGTI is open to all ITU members and experts in the field of ICT statistics and data collection. It works through an online discussion forum (http://www.itu.int/ITU-D/ict/ ExpertGroup/default.asp) and face-to-face meetings. EGTI reports to the World Telecommunication/ICT Indicators Symposium (WTIS). 22 In addition, in some (mostly developed) countries operators are offering mobile-broadband plans for use on tablet computers. These were not considered in the data collection, given that their availability at the global level is still limited. 23 These rules were presented to the Expert Group on Telecommunication/ICT Indicators (EGTI) in September 2012. EGTI agreed that ITU should collect prepaid and postpaid prices, for both handset- and computer‐based services, with the following volume allowances: 1 GB for computer‐ based and 250 MB as well as 500 MB for handset‐based usage. The EGTI proposals to measure mobile-broadband prices were endorsed by the tenth World Telecommunication/ICT Indicators Meeting held in September 2012 in Bangkok, Thailand. 24 124 Measuring the Information Society 2013 In line with the ITU definition of active mobile-broadband subscriptions (ITU, 2011b) and the OECD Wireless Broadband Indicator Methodology (OECD, 2010a), only plans that allow access to the greater Internet via HTTP are considered. This excludes plans that provide access only to walled garden services (such as a limited number of websites, content and applications) or e-mail only services. It also excludes connections limited to a part of the Internet, such as those limited to the national Internet, or to intranets. 25 Some operators throttle speeds after the data allowance included in the base package has been reached. Customers can then pay an excess usage charge in order to continue to have full-speed connections. In some cases, even throttled speeds are still considered broadband (i.e. equal to, or greater than, 256 kbit/s according to ITU’s definition). 26 Cisco (2013a), Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012-2017, White Paper, February 2013. 27 See for instance Ofcom (2011a), pp. 187-188, and Horrigan (2013). The only EU country where mobile broadband has been proven to be a substitute, rather than complement, for fixed broadband is Austria (see pp. 5-6 of the European Commission’s letter of withdrawal of serious doubts and comments in response to the proposal for wholesale broadband regulation in Austria, Case AT/2009/0970). 28 McDonough, Carol C. (2012), Fixed and mobile broadband: Demand and market structure, 23rd European Regional Conference of the International Telecommunication Society, Vienna, Austria, July 2012. Available at http://hdl.handle.net/10419/60350. 29 Mobile-broadband speeds are not always advertised, since they are often not a determining factor in the mobile-broadband package and its price. Moreover, advertised mobile-broadband speeds offer only an indication of the actual speed, which may change at any moment depending on the location of the subscriber and the number of subscribers in the same area. 30 The m-Powering Development initiative was launched in October 2012 at ITU TELECOM World 2012. For more information on this ITU initiative, see http://www.itu.int/net/pressoffice/press_releases/2012/75.aspx. 31 By end 2012, 3G coverage had already reached around 50 per cent of the population worldwide. 32 Ericsson (2012) estimates that smartphone subscriptions represented a sixth of mobile subscriptions worldwide by the end of 2012, and forecast that they will increase to up to a third of total mobile subscriptions by 2018. According to IDC, for the first time ever, in Q1 2013 more smartphones than feature phones were shipped (http://www.idc.com/getdoc.jsp?containerId=prUS24085413). 33 See Box 3.2 in ITU (2011a) for a more detailed discussion on how the methodology of the ITU mobile-cellular sub-basket affects the measurement of mobile-cellular prices in developed countries. 34 Data are not available means that (i) mobile-broadband prices are not advertised on operators’ websites, and (ii) mobile-broadband prices were not reported by the country administration to ITU through the 2012 ICT Price Basket Questionnaire. 35 The correlation between the results of a mobile-broadband sub-basket using four plans, i.e. (i) prepaid handset-based, 500 MB; (ii) postpaid handsetbased, 500 MB; (iii) prepaid computer-based, 1 GB; and (iv) postpaid computer-based, 1 GB), and a basket using two plans, i.e. (i) and (iv), is very high: 0.994 (1 being a perfect correlation). This statistical relation is confirmed by a paired sample t-test, which compares the means of the two values (using two plans and four plans) and shows that there is no significant difference. Therefore, the mobile-broadband sub-basket can be constructed on the basis of two plans without losing much information. 36 The IPB includes entry-level plans for several telecommunication services, and aims to measure the affordability of such services. Therefore, rather than a measure of different usages (high-volume, low-volume, prepaid, postpaid), it is a measure of the affordability of entry-level plans for the same usage and type of contract in each service. 37 Bahrain and the United Arab Emirates were the first Arab States to launch commercial 3G services in December 2003. Moreover, competition in the mobile-broadband market is high, with three operators offering 3G services (ITU, 2012c). Indeed, the incumbent Batelco competes with two transnational operators: Zain Bahrain and Viva, which is part of the STC group. Competition has been spurred by key regulatory decisions, such as the granting of the third mobile licence in March 2010, and the adoption of light-touch regulation for mobile-broadband prices, which have been freely set by each mobile operator since 2010 (TRA Bahrain, 2013). 38 125 Measuring the Information Society 2013 Chapter 4. Measuring the world’s digital natives 4.1 Introduction are changing young people or what young people are doing Digital environments have permeated and changed the lives at least as important to ask where it holds true that “most” of young people the world over – from mobile-phone text youth are online. with the myriad of technologies in differing contexts; it is messaging to massive multiplayer gaming and online video sharing. For more than two decades, people have discussed So far, no one has yet quantified digital natives, in particular and debated the emergence of a distinct and recognizable in the developing world. This has left some key questions global population of young people who were born into unanswered: Just how big is this population of digital the digital age and are growing up using information and natives? How are they distributed geographically and in communication technologies (ICTs) in their daily lives. This terms of levels of economic development? What does this population of networked youth is often referred to as digital tell us about youth, networks, education, policies and other, natives, and has been praised, celebrated, critiqued and broader issues? worried over. One groundbreaking collection of seminal ethnographic studies, for instance, has outlined “how digital media are changing the way young people learn, play, socialize, and participate in civic life”. In a summary of their five-year research programme, they argue that: “Most youth use online networks to extend the friendships that they navigate…. The majority of youth use new media to This chapter offers a first attempt to measure the world’s digital native population, on the basis of ITU data and United Nations demographic statistics. It presents a model for calculating the number of digital natives in each country. This in turn makes it possible to calculate the size of the digital native population by country, by region and by ‘hang out’” (Ito et al., 2008). income level. The chapter also endeavours to relate the Both national and international policy-makers are also and ultimately to policy-making. paying increasing attention to digital natives, not only presence of digital natives to education and literacy levels, because of the possibilities that ICTs open up for young According to the model, in 2012 there were around 363 people all around the world, but also on account of the million digital natives out of a world population of around role that young people play in shaping and driving the 7 billion – or 5.2 per cent. Defining “youth” as young people information society (Box 4.1). aged 15 to 24, this means that 30 per cent of the world’s youth have been active online for at least five years. While it In order to truly understand the impact of digital technologies follows that fewer than a third of the world’s young people on young people – and ultimately the social, cultural and today are digital natives, this group nonetheless plays an policy-making implications of this phenomenon – it is important role: first, because where the online population is critical to avoid confining consideration to how digital media concerned, youth are clearly overrepresented, and second, 127 Chapter 4. Measuring the world’s digital natives Box 4.1: Youth and ICT: the BYND 2015 Global Youth Summit Young people are increasingly earning recognition from Young people are rising to the challenge by pioneering the use governments and the international community as powerful of ICT and by driving trends in what is a major and dynamic agents of change whose inclusion in politics is vital to growth industry. Reasons for their great ability to adapt to and improving democratic processes. Recent social movements like use ICTs include their capacity to learn to use ICTs quickly, their the Arab Spring, Spain’s 15-M, Mexico’s YoSoy132 movement natural enthusiasm for new technology (which offers a wide and student protests in countries around the world from variety of solutions for playing, communicating and socializing), Chile to the United Kingdom reaffirm the need to address this their generally higher literacy rates and the extra spare time they generation’s call. tend to have compared to older people (ITU, 2008) . 1 Technology – and specifically ICT – has played a central role in Recognizing not only the potential impact of ICTs on young young people’s rise to prominence on a global scale. It has helped people but also the effect that young people have in terms of them to mobilize behind a common cause and to collaborate, driving the information society, ITU organized the first global and it has given them a voice where before they had none. ICT summit on ICTs and youth, from 9 to 11 September 2013, in has brought them together in response to social concerns. It has Costa Rica: BYND 2015 Global Youth Summit. The event connected them across huge geopolitical barriers. brought together young people from all corners of the globe For young people, access to information means better access to the capital, markets and training they need in order to pursue a career or studies; increased participation in political processes; and recognition of young people as responsible citizens in today’s society. Youth entrepreneurship – which is facilitated by access to technology, the Internet and with the aim of highlighting their priorities and capturing their combined voice in crucial national and international policyand decision-making processes. The outcomes of the summit included a crowdsourced, multimedia statement to be presented to Heads of State at the United Nations General Assembly in September 2013. information – is fast being positioned as a solution for youth For more information, see: employment. http://www.itu.int/en/bynd2015/Pages/default.aspx. because digital natives are key drivers when it comes to ICT uptake, use and impact. In the world as a whole, most young people are not digital natives. The degree to which young people are networked varies considerably across the globe, and digital nativism is not uniform, but differs according to location and circumstances. For instance, the model indicates that throughout Europe no fewer than 79 per cent of youth are digital natives, whereas in Africa the figure drops to 9.2 per cent. Having said that, although in the Africa region only one in ten young people may be digital natives, this chapter also shows that those young people are often their nation’s drivers in terms of getting online, thereby trailblazing a new digital future for their country. The chapter begins with a review of the literature around the digital native concept, including an overview of the debate scholars are having on the topic, and the pros and cons. It then offers an operational definition of the digital native, 128 and a computational model based on that definition. The next section applies the model to available data, resulting in a country-by-country estimate of the number of digital natives in 2012. These results are then analysed by region,2 development level and income grouping,3 and through the lens of educational enrolment levels. The chapter also highlights the need for further research into the way digital natives think, work, communicate and do things, putting more emphasis on research in and about the developing world. It concludes with some final thoughts and recommendations for policy-makers. The literature review below describes different ways of defining the digital native, along with ways in which these networked youth may (or may not) be fundamentally different from their non-networked peers. These debates notwithstanding, what the ethnographic collection cited above (Ito et al., 2008) makes plain is that the young people who are meaningfully connected to digital media do indeed experience new ways to “hang out”, “mess around” and “geek Measuring the Information Society 2013 out”; and, moreover, that these differences can be important, technologies. Three of the most common terms in use are positive and purposeful. However, what this chapter adds “net generation”, “digital natives” and “millennials”. to the discussion – among other things – is that, globally speaking, the digital natives are still the minority – albeit an When Donald Tapscott (1998) wrote about the concept important one – of today’s youth, but will soon become in the late 1990s, net generation was perhaps the first the majority. neologism used to identify young digital users. Strictly confining this population to precise generational dates, For policy-makers, these results lead to several conclusions: net generation includes only those people born between January 1977 and December 1997 ( Tapscott, 1998). • Where young people are already mostly online, this reality needs to be taken into account in terms of how we approach their learning, playing and civic engagement. • Where young people are only starting to come online, their digital future needs to be planned for. • And, in any event, young people are the tip of the digital spear across much of the globe, so we must be ready to listen, learn and grow with them. Coinciding with “the digital revolution,” the net generation is characterized as being “at the heart of the new digital media culture”, “exceptionally curious, self-reliant, contrarian, smart, focused, able to adapt, high in self-esteem, and has a global orientation” (Tapscott, 1998). Oblinger and Oblinger (2005) add that people in the net generation were born around the time the PC was introduced. These authors also posited that the net generation “is able to intuitively use a variety of IT devices and navigate the internet”, but that “their understanding of the technology or source quality may be shallow” (Oblinger and Oblinger, 2005: 25). 4.2Review of the literature Digital native, the term chosen for this report, is perhaps The concept of digital native coined digital native in 2001, and later elaborated on the A robust model to quantify digital natives has to be founded 2004, 2009, 2011). Digital natives, according to Prensky, are upon, and situated within, the existing corpus of literature the generation of young people who are all “native speakers” on the subject. It is therefore important, before defining the the most widely used phrase in circulation. Marc Prensky concept in 2009 and elsewhere (Prensky, 2001a, 2001b, of the digital language of computers, video games and the model and presenting results, to review the relevant literature. Internet (Prensky, 2001a: 1). In other words, they are the first While the literature diverges in many of its viewpoints, it is, lived their entire lives surrounded by and using tools and toys regrettably, more homogeneous in its geographic focus. of the digital age. E-mail, cellphones and instant messages are Nearly all of the studies available are specifically from North not only a part of their lives but are integral parts of their lives America, or otherwise more generally from high-income (Prensky, 2001a). According to Prensky, who focuses mostly countries. As this chapter will show, the reality of digital on youth in the United States, unlike older generations young nativeness varies considerably between high- and low- people are now constantly surrounded by and immersed in, income contexts, and so the tendency for the literature to and permanently plugged into, portable personal devices “ignore” the developing world means it is systematically such as mobile telephones, MP3 players and handheld games blind to a measurably different scenario. It is indeed hoped consoles (Prensky, 2001a; see also Selwyn, 2009). that the global quantitative model in this chapter may help respond to the literature’s narrowness of scope. Digital native, net generation or millennials generation to have grown up with new technology, having Prensky argues that the emergence and rapid dissemination of digital technology to the point where it is essential to a young person’s existence signifies a radical break or discontinuity in the last decades of the 20th century, which There are more than a few names in circulation that try to he calls a singularity (Prensky, 2001a). While suggesting a capture the broad concept of youth and digital networking radical break with previous generations, Prensky did not 129 Chapter 4. Measuring the world’s digital natives define digital natives in terms of specific dates of birth, as also characterized millennials as heavy technology users, Tapscott did with net generation. noting that a 2007 survey of US-based college students born between 1983 and 1992 found that 97 per cent of Prensky clearly distinguishes his digital native generation the students owned a cellphone and 56 per cent owned from its predecessors by referring to the latter as “digital an MP3 player. immigrants”. Digital immigrants are “those who may have acquired some form of digital literacy”, (Robinson, 2008: A 2013 private-sector survey of over 12 000 young Internet 1) but nonetheless keep “their foot in the past” (Prensky users showed that these millennials shared a number of 2001a: 2). Roughly speaking, according to Prensky, in the common characteristics, in particular the belief that ICTs case of the United States, all people born before 1980 are were important for participating in politics and society digital immigrants. They do not turn to the Internet first for (Box 4.2). information, prefer to read manuals (rather than assume that a program teaches itself ), print out e-mails and documents There are a myriad of other terms associated with digital ready-for-edit, physically show (rather than e-mail) a link, natives: generation next, Google generation (Helsper and and even speak in an outdated language (Prensky 2001a: 2). Eynon, 2010: 2), born digital (Palfrey and Gasser, 2008), generation Y (Perillo, 2007), generation C (Duncan-Howell In 2000, Howe and Strauss published Millennials Rising: and Lee, 2007), homo-zappiens (Veen and Vrakking, 2006), The Next Great Generation, from which the term millennials technological generation (Monereo, 2004) and net savvy youth took hold. The first cohorts of millennials in the United (Levin and Arafeh, 2002). Others have written about young States graduated from high school in 2000, and Howe and people who are new millennium learners (Pedró, 2007) and Strauss (2000) describe them as upbeat and engaged youth are described as living digital childhoods (Vandewater et al., whom adults hold to high standards. Jones et al. (2010) 2007) within media families (Rideout and Hammel, 2006). Box 4.2: Survey depicts optimistic millennial generation that believes in the potential of ICTs A 2013 online survey by Telefónica and the Financial Times of as a gender gap. While Asian and Latin American millennials more than 12 000 Internet users between the ages of 18 and 30 were the most optimistic about the economy and their region’s in 27 countries shows that the large majority of what the survey future, most Europeans and North Americans were much more calls “millennials” believe that technology has made an important pessimistic. and positive difference in their lives and that it is important for personal success. A comparison of women’s and men’s perception of ICT skills and the importance of technology showed that more men The Telefónica Global Millennial Survey, which was carried than women believed themselves to be on the cutting-edge out in 27 countries across six regions,4 also revealed that the of technology. Also, fewer women than men believed that young online generation tends to be optimistic about its technology had influenced their view on life and that technology future and believes that it can make a difference. Millennials was the most important area of study. say that technology has helped them participate in the political process, and that they are engaged and concerned about societal issues. According to them, the most important ways to make a difference in the world are by providing “more access to education and improving the quality of education (42 per cent), protecting the environment (41 per cent) and eliminating poverty (39 per cent)”. The majority also believe that climate change is “a very pressing issue”. The survey recognizes the need to understand the millennial generation, and Telefónica will be using the results to better understand its young customers’ concerns and needs, and to identify solutions that make a difference. According to Neelie Kreos, Vice-President of the European Commission: “These young men and women are the future. If you want to succeed you need to know what they care about – such as reducing the gender gap, improving the quality of education and increasing access The survey revealed a shared belief in the potential of technology, to technology – and work with them to make concrete positive but also highlighted a number of regional differences, as well changes.” (Telefónica press release of 4 June 2013).5 130 Measuring the Information Society 2013 While Prensky, Tapscott and these many other writers do through childhood, teenage years and middle-age, and will not often state it explicitly, their concepts emerge from continue to identify them through old age. and are premised upon high ICT-uptake contexts, and in particular the high-income communities of the United In 1993, Mackenzie Wark argued that: “Generations are not States. A thorough overview of the literature clearly reveals defined by war or depression any more. They are defined this leaning towards the United States, Western Europe and by media culture” (Wark, 1993). More than a decade later, other high-income countries, with very little work on this David Buckingham (2006) explores the idea that media is a topic examining, or emanating from, the developing world. signifier of generational affiliation. After a critical discussion, Buckingham concludes that, in fact, there may be a digital This chapter will employ the term digital native to describe generation of young people who share a cultural identity young technology users. But the question of just what this expressed in their beliefs and dispositions, and in terms of term encompasses – i.e. the precise definition of digital how and for what they use digital technology and media. native – has many answers in the existing literature. Age range or generation? There has been some debate as to whether digital natives are best characterized in terms of a fixed age range or a generation. Defining digital natives in terms of an age range does not result in a fixed set of individuals, but rather captures a snapshot of people in general at a certain period of their lives. For example, “teenager” is defined in terms of an age range, and includes everyone from 13 to 19; thus, the composition of the teenager set constantly changes as new members enter when they turn 13 and current members The debate as to whether the set of digital natives is defined by an age range or a generation extends to specifying exact birth dates for its members. As discussed above, Prensky did not set exact dates to define digital natives. However, other authors have suggested specific birth dates that characterize the generation. Some authors believe digital natives appear after 1980 (Palfrey and Gasser, 2008), while others are more precise, dating millennials as people born “in or after 1982” (Oblinger, 2003: 38) and before 1991 (Oblinger and Oblinger, 2005: 2.9). One generation or many? leave when they turn 20. Some writers have taken the generational concept of By contrast, a generation refers to a fixed set of people for digital native a step further, defining multiple generations their entire lifetimes, regardless of what age its members within a typology of digital natives. When the notion was reach. The name of the generation is in reference to the first introduced in the late 1990s and early 2000s, it was historical context in which the people were born. Edmunds conceived as just one generation, namely the young and Turner define a generation as “an age cohort that people at that time. As the concept has persisted into the comes to have social significance by virtue of constituting 2010s, it has been suggested that a second generation itself as a cultural identity” (2002: 7). Pierre Bourdieu (1993) of digital natives has now emerged. Some argue that, argues that generations are socially and culturally defined although this second generation shares the digital native and produced, each with its own tastes, orientations, characteristics of an upbringing surrounded by and using beliefs and dispositions (or “habitus”) that emerge as a technology as tools and toys, it also displays new features. result of historical and economic circumstances, as well Oblinger and Oblinger (2005), for instance, believe that the as generational struggles over cultural and economic second generation is characterized by the “omnipresence resources (Buckingham, 2006). Put simply, a generation and interactivity of the internet, the availability of a range may be understood as a cohort of people born within a of portable communications devices, and the virtually specific time-frame and who may be defined by beliefs or immediate speed of communications”. Helsper and Eynon dispositions that are shaped by a historical event or a cultural (2010) identify the rise of Web 2.0 as marking a shift in digital identity. For example, the “baby boomers” are the generation natives, separating those born after 1990 from the young of people who were born in the United States soon after adults born between 1983 and 1990, and label the former World War II. Their baby boomer label has stayed with them as second-generation digital natives. 131 Chapter 4. Measuring the world’s digital natives Jones et al. (2010) also define the concept as being much Palfrey and Gasser (2008) identify the digital native according more complex than a single generation. One of their to access to technology “because access is differentiated findings, from a study of first-year students who were all between states and regions and between social classes born after 1983 but are younger than 25, was that those within individual states”. For them, access to technology who used new technology often did so in ways that did seems to include electricity and broadband, as well as not entirely fit the expectations of the net generation or education systems that teach literacy (including digital digital native theses. literacy) and emphasize critical thinking. Subsequently, they clarify that this population is further limited insofar as access One thing is clear, though: given that the digital age has to new technology alone is not sufficient: digital natives arrived at different times in different countries, such specific must have access and have a “learned digital literacy” (Palfrey birth dates cannot be applied universally across countries, and Gasser, 2008). For example, someone with Internet and are only meaningful in the context of the countries access at home and digital literacy honed through formal studied by the authors cited above. or informal learning would be considered a digital native, A population based on access and learning, or breadth and depth of use? An alternative notion is that digital natives are a population defined by their shared accumulation of experience, skills or expertise, rather than a specific age group or generation. A population is a subset of people who share characteristics, such as all people who have access to Internet at home or who are digitally literate (Palfrey and Gasser, 2008: 14). Members of this population can either come from any age range or generation (e.g. any home Internet user), or be further delimited by age range or generation (e.g. home Internet users between the ages of 15 and 24). Helsper and Eynon (2010) express this sentiment, theorizing that a digital native is determined not only by age (or generation), but also by experience and breadth of use. In one of the few cases coming out of Africa, Thinyane, on the basis of a study of first-year university students in South Africa, argues that ‘‘rather than calling Digital Natives a generation – an overstatement, especially in light of the fact that only 1 billion of the 6 billion people in the world even have access to digital technologies – we prefer to think of them as a population” (Thinyane, 2010: 412). Even Prensky has begun to distance himself from the whereas someone with no access to the Internet, or with access to the Internet but no formal or informal training, would not. Similarly, a 10-year old or a 75-year old who have cultivated considerable, comparable expertise and skills in technologies could both be classified as digital natives, regardless of their generational differences. Thus, according to this understanding of digital native, a subset (but not all members) of the net generation are digital natives; and, conversely, members of other generations (i.e. not youths) can be digital natives. It has also been argued that the defining features of digital natives go beyond age, dates of birth, access or level of expertise, and entail consideration of just what they use the technologies for, and how. Focusing on a number of digital activities that indicate digital nativeness, Helsper and Eynon (2010) find that breadth of use, experience, gender and education are just as important as, or even more important than, age in defining the digital native. They believe that digital nativism is a combination of factors: age (the youngest generation which has grown up with technology), experience (those who have been using or submerged in the Internet the longest) and breadth and depth of use (those for whom the Internet is integrated into daily life) (Helsper and Eynon, 2010: 6). notion of the digital native as a generation (2009). A study Some scholars argue that digital natives are drawn to the conducted in the United Kingdom found “no evidence of omnipresence and interactivity of the Internet in places the much hyped generational divide” needed to define a like the United States, as well as the availability of a range generational digital native (Jones, 2002: 11). It argues that of portable communication devices, and the virtually digital natives are better understood as a diverse group immediate speed of communications (Oblinger and – young and old – who share technological experience, Oblinger, 2005; Robinson 2008: 1). In addition, digital natives skills or expertise. in developed nations purportedly exercise what Hargittai 132 Measuring the Information Society 2013 and Hannant describe as “autonomy of use,” namely the (2008) also remind us that core technology-based skills do freedom to use the technology when and where one wants, not necessarily translate into sophisticated skills with other without constraint from others such as queues of library technologies or general information literacy. patrons or employer supervision (Hargittai and Hinnant, 2008: 607). According to these scholars, young people in high-income communities use digital technology and the Internet on their mobile phones, tablets and computers to engage with friends on social media platforms, chat or instant messaging, to download and listen to music, to play games with friends or strangers around the world, to browse websites for fun, and to blog (and “micro-blog”). For these authors, the ubiquity of the technologies and the style of work and play that these communities use them to engage in circumscribe part of the definition of the digital native. Some indeed posit that the distinguishing feature of digital natives is the sophisticated way that they absorb the technologies into their daily lives (NetDay, 2004; Robinson, 2008: 68). Although the temptation is to focus on sophistication and ubiquity of use, there is growing evidence that many young people’s actual usage of digital technologies remains rather more limited in scope than the digital native rhetoric would suggest (Selwyn, 2009). For example, surveys of adolescents show a predominance of game playing, text messaging and retrieval of online content (Crook and Harrison, 2008; Luckin et al., 2009; Lenhart et al., 2008), whereas younger children’s use is more rudimentary, centred on writing, image creation and basic gaming (Selwyn, 2009). Others suggest that young people’s Internet use is not as sophisticated as it seems. For instance, Selwyn (2009) believes that the most accurate description of young people’s use of the Internet is passive consumption of knowledge rather than active creation of content, or in Crook and Harrison’s (2008) words, a “low bandwidth exchange” of information and knowledge. Although young people might consider themselves more skilled at using the Internet than their parents (Livingstone and Bovill, 2001), a study comparing Length of use and submerged exposure Departing from a focus on the type, breadth or sophistication of use, Prensky’s seminal article seems to suggest that mere exposure leads to the necessary accumulation of experience, expertise or skills to enter the digital native community. He describes young people in the United States from kindergarten to college as having “spent their entire lives surrounded by and using computers, videogames, digital music players, video cams, cell phones, and all other toys and tools of the digital age” (Prensky, 2001a). His article seems to imply that young people’s being submerged in technology and the Internet translates to some degree of experience or expertise, which calls for new teaching techniques tailored to their evolved way of learning. The notion of being submerged surfaces again in Helsper and Eynon’s (2010) definition of digital native as a combination of three factors: age, experience and breadth. Experience, as they define it, includes people “who have been on internet the longest, while they might not have grown up with the internet when young, they have been ‘submerged’ in it for the longest period of time”.6 On the basis of this simple notion of exposure, it has been suggested that the experience required to be a digital native can be measured simply in terms of the number of years a person has been online or the amount of time a person spends online (Hargittai, 2010: 5). For instance, veterans are defined as people who have been online for at least three years, whereas newcomers are those who started using the Internet in the past year (Hargittai and Hinnant, 2008: 609). A more specific type of veteran is the “netizen”, who, in addition to being online for three years, goes online, from home, every day (Howard et al., 2001). According to this study, netizens, in comparison with less avid users, engage in more capital-enhancing activities online than do the information-seeking abilities of teens and adults in the “utilitarians”, “experimenters” or “newcomers” (Hargittai and United States and Australia found that teens are likely to Hinnant, 2008: 609). have less patience and poorer research skills (Nielsen, 2005). Moreover, it has been argued that children between the Some authors have combined the generation or age range ages of nine and nineteen lack skills in evaluating material with the number of years of exposure in order to define the they find (Hargittai and Hinnant, 2008: 605). Kennedy et al. digital native. Prensky (2001a, 2001b), for instance, specified 133 Chapter 4. Measuring the world’s digital natives that digital natives were a generation of students who were education of the user and the user’s parents, gender and younger than 22 years old in 2007 (i.e. born after 1985), had ethnicity (Hargittai, 2010). more than ten years’ experience using a computer, indicated they had learned to use a computer by teaching themselves or through family and friends, and reported being able to solve ICT problems by themselves or by drawing on supportive social networks. Cognitive and learning differences Another way to approach the digital native concept is through how digital natives think and learn differently from other people. Howe and Strauss (2000) and Prensky (2001a, Brown and Czerniewicz conducted a study based on a 2001b) offer complex visions of the digital native as young definition of those who have “grown up digital” as people people (or students) who think and process information who had used a computer at least since they were 12 years in fundamentally different ways from their predecessors. old and had more than ten years’ experience (2010: 4). Prensky (2001b) argues for a digital native version of Linking their data to Prensky’s more stringent criteria, among neuroplasticity, the phenomenon whereby stimulation of other findings, they showed that only a small percentage the brain causes it to change structure and thus affects the of students – not a whole generation – actually met the way people think. He submits that children raised with a criteria Prensky proposed. computer think differently because of their “hypertext minds”. Socio-economic, gender and geographic definitions In contrast to a focus on age or depth or length of use as the qualities best defining digital nativeness, some authors argue that other factors, such as socio-economic position, gender, class, language and geography are better defining qualities (Shah and Abraham, 2009). Studies suggest that young people’s ability to access digital technologies runs strongly along lines of socioeconomic status and social class, as well as gender, geography and the many other prominent, entrenched “social fault lines” (Golding, 2000). Some social groups of young people appear to be just “They leap around. It is as though their cognitive structures were parallel, not sequential” (Prensky, 2001b: 10). He asserts that “today’s students think and process information fundamentally differently from their predecessors” and that their “brains have changed” (Prensky, 2001a: 4). According to Prensky, digital natives have been conditioned by their technological environment to expect immediate responses. They prefer random non-linear access to information (i.e. hyperlinks), and have a preference for images over text-based content. Described as multitaskers, they are comfortable being engaged in several tasks simultaneously. They are characterized as being impatient with slower, systematic means of acquiring information and knowledge, and expect instant response and gratification or reward as digitally excluded as older generations, although in from the technologies they use. Additionally, according to subtle ways. For instance, studies across Europe and North these theories, they are highly adaptive, function best when America show that levels of computer and Internet use are networked, and use a range of technologies to network lower among rural youth, female youth and youth from with their peers (Prensky, 2001a; Robinson, 2008: 1; Helsper families with low levels of parental education (Vandewater and Eynon, 2010: 2). et al., 2007; Selwyn, 2009). Another study shows that girls use the Internet in a greater variety of ways than boys at a younger age (9-15 years), but that boys make broader use of the Internet at an older age (16-19 years) (Livingstone and Helsper, 2007: 13). Citing neurobiology, social psychology and studies done on children using games for learning, Prensky (2001b) also suggests that digital natives learn differently: “linear thought processes that dominate educational systems now can actually retard learning for brains developed through game General academic literature on Internet use echoes these and Web-surfing processes on the computer” (Prensky, studies, suggesting that even once people cross the initial 2001b: 10). Their approach to learning, he posits, is more connectivity divide, numerous differences affect how they collaborative, oriented to problem-solving and task-based incorporate the Internet into their lives, including level of (Prensky, 2001a). 134 Measuring the Information Society 2013 However, other scholars and research studies disagree more research in this area seems necessary. Nonetheless, it with, or are skeptical about, the notion that digital natives appears clear that many education systems are integrating process information differently. A study by Margaryan et al. technology in institutional design and curricula for students (2011) in Australia did not find evidence to support claims at all levels (pre-primary through higher education), with that students’ patterns of learning and technology use mixed results, both enhancing and hindering students’ are shifting or that young people adopt radically different ability to learn. 7 learning styles. Rather, they conclude that students seem to conform to traditional pedagogies, albeit with minor uses of digital technology tools for content delivery (Margaryan, The literature described above demonstrates that there is an array of definitions for the digital native, from a generation, Littlejohn and Vojt, 2011). to an age range, to including aspects of expertise, learning, Bullen and Morgan’s (2011) study conducted in six different some argue that the set of digital natives is defined not just countries at a range of different institutions showed that by who they are or what they do, but also by how their brain learners have differing views about the integration of social works and how they learn and think. and academic uses of technology, and are not generally challenging the dominant academic paradigm. They conclude that, to date, there is no convincing evidence to support claims that digital natives learn differently and that the “implications for education are far from clear” (2011: 60, 62-23). A 2013 study carried out among first-year undergraduate students at the University of Hong Kong (HKU), China, showed that “first-year undergraduate students at HKU are indeed digital natives, using a wide range of technologies for personal empowerment and entertainment, but not always digitally literate in using technology to support their learning” (Kennedy and Fox, 2013). The study, which aimed at expanding knowledge on digital natives to the “Asian learner and their use of technology”, also tried to understand the potential impact that digital nativism had on the design of learning environments in higher depth or breadth of use, or years of exposure. In addition, The following section will show that the literature not only varies on just how to define digital native, but also differs in terms of its enthusiasm for the concept itself. While some writers have argued that digital nativism is the biggest change to hit the world’s youth, others suggest it is more of the same and part of an ever-evolving media landscape. Criticisms of the digital native concept As the concept of the digital native has attracted increasing attention within the academic and popular media, a significant body of critical literature has challenged many points. Looking at these critical responses helps to reveal ways in which a quantitative model of the kind presented in this chapter is inherently limited, as well as areas where the work can respond to specific critiques and challenges. Moral panic and historical amnesia education. It found that there were new opportunities to “create blended learning environments” (2013: 76), One criticism levelled at Prensky’s work in particular is that including opportunities to motivate and assess students it inspires an academic moral panic, being put forward that take advantage of different learning technologies, with “tones of euphoria and paranoia” (Shah and Abraham, but that face-to-face relationships remained important. 2009: 12). This school of thought argues that digital native proponents have developed an argument in “dramatic Much of the literature emphasizes ways in which technology language, proclaim a profound change in the world, and may be incorporated as an educational tool to enhance pronounce stark generational differences” (Bennett et al., digital natives’ learning, and countless journals, articles and 2008; Bennett and Maton, 2010). Critiques quote Prensky’s blogs join the conversation about how best to incorporate dramatic tone (“really big discontinuity... a ‘singularity’ – an technology in the classroom. event which changes things so fundamentally that there is absolutely no going back” (2001a: 1)) and binary language In sum, the debate as to whether digital natives think, learn (new generation vs. all previous; technical natives vs. or work differently and, if so, how, is not yet settled, and immigrant accents; learners vs. teachers, etc.). 135 Chapter 4. Measuring the world’s digital natives Digital nativism also falls prey to something Bennett and special abilities among students interviewed (Sánchez et Maton (2010) call historical amnesia. Historical amnesia, they al., 2011). say, is when declarations of fundamental change obscure, if not explicitly deny, past precedents for contemporary Moreover, the issue of ICT disparity between developing change (Bennett and Maton, 2010: 16). The digital native, and developed countries has been raised numerous times when described as a radical break, lessens the incentives to recognize preceding social or cultural changes. Bennett and Maton also suggest that the digital native theory may mistake new expressions of well-known interests and in the literature as a constraint on the global applicability of the existing concepts of digital nativeness (Brown and Czerniewicz, 2010; Palfrey and Gasser, 2008; Palfrey, Gasser, Maclay and Beger, 2011; Smith, 2009; Thinyane, 2010; Tustin behaviours for totally new phenomena. et al., 2012; Williams, 2011). Homogeneity in the presence of diversity Palfrey and Gasser contrast the “high levels of broadband One of the most prevalent criticisms focuses on the diversity (often) emphasize critical thinking” in wealthy countries with of young users of technology (and those who do not use the situation in the developing world where “technology it at all), and the tendency to conflate digital natives into a is less prevalent, electricity often scarce, and literacy rates homogeneous whole. low, and the number of teachers who know how to instruct access, high rates of literacy, and educational systems that kids in the use of technologies in short supply” (Palfrey and The critics of treating digital natives as a generation point Gasser, 2008: 14). Furthermore, the growing disparity in out that the generation in question is quite diverse in terms technology access and use also exists within rich countries, of its access to and use of technology. Many authors have such as among rural or low-income communities (Palfrey argued that there is a digital divide in technology access and and Gasser, 2008). The Berkman Center for Internet and use, as evidenced by significant differences in how and why Society at Harvard University and UNICEF underline this young people use the new technologies and the Internet, as concern by identifying three divides that must be bridged: well as how effectively they use them.8 A number of writers basic access to technologies and related infrastructure have highlighted the complexity and diversity of the use (e.g. electricity); skills to use the technologies; and limited of new technologies by young people, which tend to be understanding of how young people navigate the online ignored or minimized in arguments that support the digital native concept (Helsper and Eynon, 2010). Studies highlight systematic variation among young adults’ online behaviour (Hargittai, 2010) and the way in which the digital native theory “over-states the rift between generations in terms of their level of immersion in technology” (Bayne and Ross, 2007: 1). This is especially the case in developing countries, where the use of, and even basic access to, ICTs is much more limited than in high-income countries. Brown and Czerniewicz (2010) note that in South Africa the term digital native describes only a small and elite group of students. They also identified another group of students who were broadly inexperienced with computer-based technologies; they world (Palfrey et al., 2011). According to them, the effects of these divides are felt most acutely in the developing world. Other authors have emphasized the fact that there are significant differences in how and why young people use new technologies, as well as how effectively they use them (e.g. DiMaggio and Hargittai, 2001; Facer and Furlong 2001; Hargittai and Hinnant, 2008; Livingstone and Helsper, 2007). According to Helsper and Eynon (2010), this complexity and diversity of use of new technologies by young people is a topic often ignored or minimized in many arguments in support of the digital native concept. “Othering” and creating binary opposites go on to call this group “digital strangers” (Brown and A further criticism levelled against digital native is that it is an Czerniewicz, 2010). Li and Ranieri (2010) surveyed ninth- “othering” concept. It sets up a binary opposition between grade students in China, here too finding a broad range of those who are natives and those who are not – the so- digital competencies. Similarly, a qualitative study of digital called digital immigrants (Brown and Czerniewicz, 2010). natives in Chile did not find common technical traits or Just as Prensky describes the new generation in contrast 136 Measuring the Information Society 2013 to predecessors, the technical natives as opposed to the the same definition applied to other parts of the world immigrants with unshakeable accents (2001a), Tapscott’s would not hold true. Other scholars note the apparent (1998) account also is based on binary oppositions between predominance of research from developed countries (Palfrey technologies (the television versus the Internet) and et al., 2011) and in particular the United States (Thinyane, generations (the baby boomers versus the net generation) 2010). Indeed, in one review of the global reach of the term, (Buckingham, 2006). respondents from Africa, Latin America and Asia routinely expressed unfamiliarity with the digital native concept (Shah According to these critiques, binary opposites create an “other” by alienating one of the binary pair (e.g. the noticeable immigrants and the outdated television). Livingstone and Helsper (2007) concluded that a binary divide between haves and have-nots, or users and nonusers, no longer applies to young people. For example, a study of pre-service teachers at the University of British Columbia in Canada found no statistically significant difference in ICT scores between digital natives and digital immigrants; they suggest that “the notion of a digital divide is misleading and deceptive, distracting researchers from studying the diversity of ICT users and the nuances of their ICT competencies” (Guo, Dobson and Petrina, 2008: 235, 252). A recent study by Romero, et al. (2012) also suggests that a binary divide between generations is a fiction. In their study of one thousand or so online learners from Canadian and European universities, they found that older learners (people born before 1982) felt equally as confident with using ICT as the younger learners (people born between 1982 and 1991) and were able to carry out different activities and Abraham, 2009). Summary of the literature review The literature discussed above reveals the contours of the digital native academic discourse and the extensive research that has been carried out on the digital native concept, albeit mostly in the United States and Western Europe. First conceived of as a generation corresponding roughly with Generation Y (people born between 1980 and 1995), it has been posited that a second generation was born with the Web 2.0 wave. Other scholars depart from the idea of characterizing digital natives by age range (for example, young people under 25) or generation, arguing instead that other features such as breadth of use, skills, experience or expertise are more pertinent. Proponents of this approach suggest that digital natives can be recognized by their use of technology, whether it is used as a toy for socializing and entertainment or as a tool for information and career advancement. Notably, taking into consideration the use simultaneously. of technology, and in particular skilled or honed expertise, Western bias from older generations who have as much experience broadens the scope for some authors to include people with technology as young people born and raised with An additional significant criticism levelled against the the technology (if not more). In these cases, digital natives digital native concept is that it is reminiscent of morally are best considered a population – neither a complete questionable chapters in history related to “migration, generation, nor confined to a particular generation. integration, and racial and cultural differences in Western society” (Bayne and Ross, 2007). Bayne and Ross (2007) Another prominent approach to digital natives focuses on submit that the native evokes a controlling force in the how they think, describing them as non-linear, collaborative future while the immigrant is portrayed as old and obsolete. multitaskers who expect immediate responses, are highly networked, and prefer images and multimedia over text. This Western bias underlines, for some authors, the high- While some believe that digital natives think fundamentally income country partiality of many digital native proponents. differently from previous generations, others express doubt For instance, defining natives and immigrants by generation that digital natives learn and process information differently. reflects a privileged position of living in the United States, according to Thomas (2011), who argues that Prensky’s Not surprisingly, the digital native concept has been subject description of a digital native describes a generation gap to a range of criticisms. Some claim that much of the which may have occurred in the United States, but that literature adopts an alarmist attitude that exaggerates the 137 Chapter 4. Measuring the world’s digital natives role of technology, overly singing its praises or dwelling on Having said that, quantifying and counting digital natives its pitfalls. Another critique focuses on the homogeneous cannot respond to the full range of criticisms levelled against nature of some descriptions of digital nativism, pointing out the concept. For example, the proposed process of counting that not all young people have access to or use technology digital natives does not allow for nuancing, but rather entails in the same way, and that those who use technology are not a binary decision: either someone is or is not a digital native. necessarily young or skilled. Nevertheless, adding a global quantitative model and The literature review clearly demonstrates how little research analysis of the digital native to the available literature has been done so far on digital natives and networked youth should provide greater insights into the practical uses of in the developing countries. While this can be explained by the concept – and in addition provide a testable platform a number of factors, including the fact that the information that can further illuminate its strengths and weaknesses. society, and especially Internet use, has emerged much later in those countries compared with the United States and Irrespective of the conceptual debates, the world’s Western Europe, there is an urgent need for further research population of digitally networked youth is real and, hence, on how ICTs are used by, and impact on, young people measurable. By creating a globally testable measure of in the developing world. There is plenty of evidence that digital nativism, as this report does for the first time, some points to the eagerness of young people across the world of the points of debate outlined above can be reasoned to jump on the information society bandwagon once the through and, perhaps, put aside. technologies become available and affordable. Indeed, ITU statistics show that Internet usage among young people (15-24 years old) is higher than the corresponding figure for the total population, especially in countries with low Internet usage overall. In many developing countries, Internet access at home is limited. Other places, such as schools and Internet cafes, not only become important locations for Internet access but are also more targeted towards, or frequented by, The digital native model This section puts forward a definition of the digital native that is operational within the confines of the existing data. It then develops a computational model that maps existing data onto the definition. Put simply, a digital native is defined here as the population of networked youth – aged 15-24 the younger members of the population. Coupled with the years – with five or more years of online experience. The relatively higher proportion of youth in the populations of number of digital natives in 2012 is computed country by developing countries, an important group of digital natives country using the model, either on the basis of existing could emerge in those countries within the next decade. country estimates of the number of young people online in 2007 (five years before 2012), or by employing a statistical function to work out an estimate. The resulting estimate, 4.3 Quantifying digital natives along with overall country population data, creates a worldwide measure of digital natives in 2012. While the literature on digital natives is rich and significant, The literature review above makes clear that many to date there has been no attempt to develop a quantitative parameters have been used to define a digital native: age model and count the digital native population worldwide. range, date of birth, level of exposure to the Internet and Through the creation of such a model, and the resulting related technologies, depth and range of use of these analysis, the concept can be circumscribed and tested for technologies, and more. Any analytical model will want to its value and validity. This process will serve both to provide include the most salient parameters, but has to balance this evidence to support (or refute) the value of the concept, and against the need for a realistically quantifiable model that to highlight possible responses and policy issues specific to relies on available global datasets. the digital native community. This chapter thus complements and augments the existing literature by providing a global With these two requirements in mind, this chapter puts perspective and offering testable results and measurements. forward the following definition: 138 Measuring the Information Society 2013 Definition: A digital native is defined as a youth, aged 15-24 inclusive, with five years or more experience using the Internet. This definition encompasses the most salient elements often cited in the literature, while excluding those dimensions that are prohibitively hard to operationalize and measure (e.g. depth of use) and/or most controversial (e.g. cognitive differences defining the population). Nor does the definition prescribe what the Internet is used for. Specifics of the model Consider the year 2012. According to the definition above, in 2012 a digital native would be someone with five or more years of experience using the Internet who is 15 to 24 years of age. Under this model, a simplifying assumption is made that once someone in their youth starts to use the Internet they continue to use it year after year. For example, if a young person was using the Internet in 2007, the model assumes that they are still using it in 2012. Similarly, if they were using the Internet before 2007, they continued to use it in 2007. This is called the monotonicity assumption. Monotonicity assumption: Once a young person starts to use the Internet, they continue to use it year after year, presuming no deaths or drop-outs among young Internet users. Given the above definition and assumption, the number of digital natives in a country in 2012 is equal to the number of Internet users aged 10-19 in the year 2007. Such people will have at least five years of Internet experience by 2012. Therefore, in order to calculate the total number of digital natives in a country in 2012, it is necessary to take the Internet penetration (users per 100 people) for youth aged 10-19 in 2007 in that country and multiply it by the total number of youth aged 10-19 in 2007 in that same country. Box 4.3: Digital native model Digital native penetration (%) in year t = Internet users (%) aged 10-19 in year t - 5 Digital native absolute numbers in year t = Internet users (%) aged 10-19 in year t - 5 * population aged 10-19 in year t - 5 / 100 Youth Internet use functions: Internet users (%) aged 10-19 = survey data, where available, otherwise: y = -0.014x2 + 2.358x + 0.337; y = 100; 0 < x ≤85 x > 85 (1) (2) where x is the total Internet user penetration (%) and y is the youth Internet user penetration (%) in a given year. Country example: Costa Rica The youth Internet user penetration was not available for Costa Rica in 2007; therefore, the model has to be applied. Since total Internet user penetration in Costa Rica in 2007 was estimated at 28.4, function (1) is applied: y = -0.014 * 28.42 + 2.358 * 28.4 + 0.337 = 56.01 This means that the estimated youth Internet user penetration (%) for Costa Rica in 2007 was 56.01, which, according to the digital native model, is equal to the digital native penetration (%) in year 2012. Digital native absolute number in year 2012 = Internet users (%) aged 10-19 in year 2007 * population aged 10-19 in year 2007 / 100 = 56.01 * 855 218 / 100 = 479 028 139 Chapter 4. Measuring the world’s digital natives In order to determine the percentage of youth who used Figure 4.1 illustrates the distribution of digital natives the Internet in 2007, national household survey data by country across the globe, with countries listed in collected by ITU were used, where available, with any alphabetical order. A bigger box means more digital missing values being estimated. To estimate the missing natives within that country. Not surprisingly, countries with values for the proportion of youth Internet users, a function very large populations, such as Brazil, China and India, are was developed, based on available data from household prominent in the figure, but highly networked countries surveys, which relates the Internet penetration of the overall with relatively smaller populations, including Canada, the population (x) to the Internet penetration specific to youth Netherlands and the Republic of Korea, also stand out. (y) (see Box 4.3). 9 When viewed in terms of their absolute numbers, digital Since more survey data are available for the age group natives in the largest countries (e.g. China and India) 15-24 than for the age group 10-19, data for the first age predominate. However, when they are studied in terms group were used in the function.10 Hence, for the purpose of penetration per 100 people, i.e. as a percentage of of this analysis, it is assumed that Internet user penetration the overall population, other patterns are revealed. The for the age group 10-19 is similar to that for the age estimated proportion of a total population that are digital group 15-24. Available data show that in most cases the natives varies between countries, from a low of 0.13 per penetration for the 10-14 age group is indeed the same or cent (Timor-Leste) to a high of 14 per cent (Iceland).The very similar to that for the age group 15-24.11 In summary, countries at the median are Belarus and Syria, with 5.5 and this Youth Internet Use Function takes the available youth- 5.4 per cent digital natives, respectively. Interestingly, China disaggregated Internet penetration data and estimates is very close to the median, with digital natives representing youth Internet penetration for all countries where this 5.6 per cent of its population. information is not available from household surveys for a given year, in this case for 2007. The model was applied to a These percentages are portrayed on the map in Figure 4.2, total of 180 countries.12 Box 4.3 presents the model specifics where darker shading represents a higher proportion of and a country example. digital natives. Table 4.1 shows the values for all countries included in the model. 4.4 Analysis of the results Not surprisingly, the results show that high-population countries have high absolute numbers of digital natives, and that high-income countries (which usually display The previous section defined the digital native and high overall levels of Internet use) tend to have relatively operationalized the definition with a formal model and high percentages of their population categorized as digital existing data from surveys. This section will apply the natives. Iceland, New Zealand, the Republic of Korea and the results for an analysis of digital natives across the world United States, for example, are all countries with relatively (180 countries). high levels of ICT use that also have a high proportion of According to the above digital native model, in 2012 there digital natives. were 363 million digital natives out of a world population of The countries with the highest proportion of digital natives around 7 billion. Thus, across the globe, some 5.2 per cent of are all high-income or upper-middle-income countries, and the world’s total population qualified as digital natives. At the include countries with very high levels of overall Internet same time, this accounts for 30 per cent of the global youth penetration, countries at the top of the ICT Development population aged 15-24. If all digital natives came together Index (IDI) and countries with relatively larger shares of to make up their own country, it would be slightly bigger youth population. than the United States, the world’s third most populous nation. The sum of all digital natives also represents more Iceland, the country with the highest proportion (14 per than the entire population of Brazil and Mexico combined. cent) of digital natives among its population, boasts the 140 Measuring the Information Society 2013 Figure 4.1: Distribution of digital natives across countries (absolute numbers), 2012 Algeria Argentina Indonesia Germany Canada Japan Brazil Australia Moldova Iran (I.R.) Ban- Belglad- gium esh Chile Korea (Rep. of) India Mexico Italy Morocco Sudan Nigeria Turkey Netherlands China Thailand United Kingddom Pakistan Peru Russian Fed. Venezuela Philippines United States Saudi Arabia Russian Fed. Colom- Czech Rep. bia Egypt Viet Nam Spain France South Africa Note: Absolute number of digital natives in each country (listed alphabetically, top to bottom and left to right) indicated by relative size of box. Source: ITU highest Internet user penetration rates worldwide, at 96 87.4 per cent and an Internet usage penetration of 89.5 per per cent in 2012, and almost all households in the country cent. While this is somewhat below other top IDI performers, have Internet at home. Iceland’s youth population accounts New Zealand’s youth population is proportionately larger for more than 14 per cent of the total population of the than that of other top IDI countries, at 14.3 per cent of the country – one of the highest ratios among the European total population. In 2012, almost 95 per cent of the youth countries. In 2012, no fewer than 96 per cent of Iceland’s population were digital natives. young people were digital natives. The Republic of Korea lies in third place, 13.5 per cent of New Zealand stands out among the high-income countries, its population being digital natives, just below the figure in second position with 13.6 per cent of its population for New Zealand. ICT uptake in the country is exceptionally qualifying as digital natives. Ranked 16th in the IDI, New high, and the Republic of Korea has topped the IDI for Zealand has a household Internet access penetration of the past three years. Although its youth population is also 141 Chapter 4. Measuring the world’s digital natives Figure 4.2: Digital natives as a percentage of total population, 2012 0.1 - 3.0 3.1 - 6.0 6.1 - 9.0 9.1 - 14.0 Source: ITU. relatively large, at 13.5 per cent of the total population, the cent) that was also fairly high in 2007 (42 per cent). With 18 main reason for the Republic of Korea’s high position is per cent of the population falling into the youth age range, high Internet usage among young people: by 2012, almost however, Malaysia does not have a particularly large youth 100 per cent of the country’s youth population qualified as “bulge” (more will be said about this phenomenon below). digital natives. The government has made extensive efforts Instead, the main explanation for Malaysia’s position near to adapt its education system to the needs of digital natives the top of the list is the high estimated proportion of young and to take advantage of ICTs to transform the way students people who have at least five years of experience in using learn. Its SMART Education project stands for Self-directed, the Internet, at 74.7% in 2012. While home Internet access Motivated, Adaptive, Resource-enriched and Technology- was not particularly high (15 per cent) in 2007, young people embedded learning. By 2015, all students will be able to may access the Internet in other locations, such as schools. access cloud-based educational services via wireless Internet Malaysia has a history of investing not only in education, but in school, and utilize the learning materials whenever and also in ICTs in education. A 2002 ITU study on the Internet wherever they want. There will be an unlimited amount of in Malaysia highlighted the country’s advances in bringing educational material, in all possible formats, including videos schools online, and back in 2000 as many as 31 per cent of and games. The Government of the Republic of Korea also primary and 54 per cent of secondary schools already had provides opportunities for teachers to further develop their PC facilities, while 10 per cent of primary and 34 per cent of ICT-in-education skills. secondary schools had Internet access (ITU, 2002). Malaysia, in particular, stands out as a developing country Among the Latin American countries, Brazil, Chile, Costa with one of the highest proportions of digital natives. With Rica and Uruguay each have 10 per cent or more digital 13.4 per cent of digital natives in 2012, the country ranks natives, more than in a number of high-income developed fourth globally, as compared with its much lower rank (59th) countries. In Morocco, Peru and Turkey, some 9 per cent on the IDI. This is a country with a relatively high overall of the population are digital natives, more than in Spain, Internet penetration across all age groups in 2012 (66 per Greece or Italy. In Italy, in particular, the percentage of digital 13 142 Measuring the Information Society 2013 Table 4.1: Digital natives, 2012 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Economy Iceland New Zealand Korea (Rep.) Malaysia Lithuania United States Barbados Slovakia Latvia Denmark Norway Singapore Brunei Darussalam Finland Netherlands Israel Canada Poland Estonia Sweden Hong Kong, China Australia Chile Switzerland United Kingdom France Malta Luxembourg Saint Lucia Macao, China Belgium Austria Saudi Arabia Hungary Trinidad & Tobago Grenada Brazil Germany Uruguay Costa Rica Slovenia TFYR Macedonia Czech Republic Peru Cyprus Ireland Japan Croatia Turkey Bahamas Portugal Morocco Argentina Jamaica Jordan Viet Nam Montenegro Serbia Spain Colombia Maldives Kuwait Venezuela Panama United Arab Emirates Mexico Bulgaria Greece Moldova Romania Bosnia and Herzegovina Dominican Rep. Lebanon Micronesia Mauritius S. Tomé & Principe St. Vincent and the Gr. Italy Egypt Kyrgyzstan Tunisia Bahrain Guyana Russian Federation Thailand Albania Zimbabwe Azerbaijan China Belarus DN (total) 45’495 606’040 6’552’589 3’914’573 436’045 41’322’288 35’830 696’917 275’036 685’624 607’837 643’589 50’049 645’961 1’993’587 915’636 4’124’622 4’538’102 158’260 1’110’582 833’148 2’621’640 1’961’464 862’768 6’992’034 6’982’540 45’548 56’414 18’921 60’149 1’139’462 886’475 2’988’281 1’018’863 137’561 10’702 20’081’178 8’287’453 340’181 479’028 202’731 205’166 1’044’895 2’922’648 110’504 447’888 12’200’091 420’144 6’933’267 32’393 980’279 2’829’799 3’555’551 238’553 542’817 7’527’242 52’658 819’138 3’887’992 3’904’502 26’444 234’242 2’366’932 285’298 635’781 9’086’114 560’896 861’104 263’203 1’584’515 270’180 733’019 306’940 8’013 92’113 11’849 7’335 4’065’346 5’532’746 357’450 700’044 87’967 48’049 8’974’678 4’387’062 198’333 796’166 551’410 75’210’372 527’032 DN as a % of total population 13.9 13.6 13.5 13.4 13.2 13.1 13.1 12.7 12.3 12.3 12.3 12.2 12.1 12.0 11.9 11.9 11.9 11.8 11.8 11.7 11.6 11.4 11.3 11.2 11.1 11.0 10.9 10.8 10.6 10.6 10.6 10.5 10.4 10.2 10.2 10.2 10.1 10.1 10.0 10.0 9.9 9.9 9.9 9.8 9.8 9.8 9.6 9.6 9.3 9.2 9.2 8.7 8.6 8.6 8.4 8.4 8.3 8.3 8.3 8.2 8.2 8.1 7.9 7.9 7.8 7.8 7.6 7.5 7.5 7.4 7.2 7.2 7.2 7.1 7.0 6.9 6.7 6.7 6.6 6.6 6.5 6.5 6.3 6.3 6.3 6.1 6.1 5.9 5.6 5.5 DN as a % of total youth* 95.9 94.8 99.6 74.7 92.7 95.6 90.5 92.9 97.0 96.9 93.3 88.4 73.7 98.3 98.4 80.0 90.1 89.4 96.0 89.4 90.5 83.1 67.0 94.0 85.9 90.7 79.8 88.5 56.0 73.7 91.3 87.7 59.0 84.9 63.4 48.4 60.2 94.2 65.4 54.7 92.3 67.5 82.1 52.1 62.7 78.4 99.5 80.7 53.7 53.3 86.7 45.8 52.5 46.7 40.4 43.6 60.1 62.8 84.6 45.6 35.4 55.8 43.5 46.0 56.6 43.3 68.3 74.6 45.6 60.1 55.7 38.8 40.1 32.2 42.3 32.8 36.5 67.8 34.9 30.5 36.7 50.8 32.4 49.6 42.3 34.1 25.1 30.9 34.7 41.8 Share of youth population** 14.4 14.3 13.5 17.9 14.3 13.7 14.4 13.7 12.7 12.6 13.1 13.8 16.5 12.2 12.1 14.9 13.2 13.3 12.3 13.1 12.8 13.8 16.8 11.9 13.0 12.1 13.6 12.2 19.0 14.4 11.6 12.0 17.7 12.1 16.1 21.0 16.8 10.7 15.3 18.3 10.8 14.7 12.1 18.9 15.6 12.5 9.7 11.9 17.3 17.3 10.6 19.0 16.5 18.5 20.8 19.2 13.8 13.2 9.8 18.0 23.0 14.5 18.2 17.1 13.8 18.1 11.1 10.1 16.4 12.3 13.0 18.5 17.8 22.2 16.6 21.0 18.4 9.8 18.9 21.5 17.8 12.7 19.6 12.7 14.8 18.0 24.4 19.0 16.0 13.2 Rank 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 Economy Syria Suriname Belize Bolivia Qatar Honduras Ecuador Cape Verde Fiji Oman Iran (I.R.) Algeria Mongolia Tajikistan Sudan Paraguay Uzbekistan Kenya Senegal Cuba South Africa Haiti Guatemala Tonga Pakistan Tanzania El Salvador Vanuatu Nigeria Georgia Gambia Gabon Bhutan Philippines Ukraine Botswana Yemen Samoa Namibia Swaziland Armenia Indonesia Zambia Nicaragua Lesotho Libya Ghana Uganda India Kazakhstan Angola Cameroon Sri Lanka Congo Togo Comoros Guinea-Bissau Rwanda Afghanistan Solomon Islands Lao P.D.R. Côte d'Ivoire Bangladesh Benin Djibouti Papua New Guinea Turkmenistan Nepal Equatorial Guinea Mauritania Somalia Malawi Mozambique Iraq Chad Mali Guinea Burundi Burkina Faso Madagascar Cambodia Liberia Ethiopia Central African Rep. Eritrea Congo (Dem. Rep.) Niger Sierra Leone Myanmar Timor-Leste DN (total) 1’141’451 28’450 16’847 500’185 93’271 362’189 671’850 22’316 38’639 126’663 3’188’749 1’512’106 117’484 280’152 1’789’721 259’834 1’072’320 1’596’013 485’465 414’580 1’848’847 369’222 528’839 3’655 6’143’363 1’571’929 197’758 7’909 5’154’598 128’126 53’912 44’935 21’253 2’699’063 1’231’068 54’891 665’487 4’583 57’556 29’692 75’543 5’841’176 324’758 123’340 43’477 122’917 468’171 644’338 22’660’059 269’422 317’113 302’917 301’853 55’530 72’077 8’701 17’710 118’691 335’958 5’549 62’152 195’380 1’423’409 84’682 8’169 62’852 39’693 238’079 5’653 26’877 56’955 85’334 122’269 166’937 55’872 73’385 46’734 38’081 74’860 83’190 50’145 12’759 229’727 11’713 14’180 175’259 40’436 11’034 76’302 1’495 DN as a % of total population 5.4 5.3 5.2 4.9 4.8 4.6 4.5 4.4 4.4 4.4 4.2 4.1 4.1 4.0 3.9 3.9 3.8 3.7 3.7 3.7 3.6 3.6 3.5 3.5 3.4 3.3 3.2 3.1 3.1 3.0 3.0 2.9 2.8 2.8 2.7 2.7 2.6 2.5 2.4 2.4 2.4 2.4 2.3 2.1 2.0 1.9 1.8 1.8 1.8 1.6 1.6 1.5 1.4 1.3 1.1 1.1 1.1 1.1 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.8 0.7 0.6 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.1 DN as a % of total youth* 26.1 31.6 24.4 24.2 38.6 21.6 24.6 19.7 24.7 26.0 21.6 21.6 20.7 17.2 19.9 19.5 17.5 18.5 18.0 26.7 18.6 17.3 17.2 18.5 16.0 16.9 14.4 15.8 16.0 19.7 14.4 13.6 13.7 14.1 21.4 12.4 12.0 12.6 11.5 9.9 14.4 13.7 11.8 9.8 8.5 11.4 9.3 9.0 9.5 9.6 7.9 7.3 9.5 6.8 5.5 6.3 5.6 5.4 4.9 5.0 4.2 4.7 4.7 4.6 4.2 4.6 3.7 3.7 3.9 3.7 3.1 2.6 2.5 2.5 2.4 2.3 2.2 2.0 2.1 1.9 1.6 1.6 1.2 1.2 1.3 1.2 1.3 0.9 0.9 0.6 Share of youth population** 20.7 16.8 21.3 20.1 12.5 21.2 18.4 22.5 17.9 16.7 19.5 19.2 19.9 23.0 19.7 19.9 21.8 20.2 20.5 13.8 19.6 20.8 20.4 18.8 21.3 19.5 21.9 19.9 19.3 15.1 20.5 21.1 20.7 19.8 12.8 21.5 21.8 19.7 21.2 24.5 16.9 17.5 19.8 21.2 23.1 16.7 19.7 20.1 18.9 17.1 20.0 20.4 15.0 19.2 20.7 17.9 19.9 19.6 20.6 19.5 23.0 20.4 20.1 19.7 21.2 19.3 21.0 20.9 19.4 19.8 18.7 20.4 19.8 19.6 19.8 19.6 19.8 21.9 20.0 20.2 21.8 19.2 21.6 20.6 19.5 20.4 18.5 19.5 18.2 21.2 Note: DN: Digital natives. * Refers to population aged 15 to 24. ** Share of youth population (15-24) among the total population. Source: ITU. 143 Chapter 4. Measuring the world’s digital natives 16 14 12 10 8 6 4 2 0 0.4 As % of total population As % of total population Chart 4.1: Digital natives as a percentage of total population, top countries (left) and bottom countries (right), 2012 0.3 0.2 0.1 0.0 Source: ITU. natives (6.7 per cent) is relatively low, compared with other major urban areas, Cambodia could rapidly increase its European countries and developed countries elsewhere. number and proportion of digital natives. Important steps This can be explained by the relatively low youth population are already under way in this regard: in 2013, the country ratio in Italy and its lower Internet user penetration relative finalized its National Broadband Policy, which aims at to other countries from the European Union in 2007. expanding broadband Internet access nationwide.15 In Africa, Mauritius, which ranks first in the regional IDI, also Digital natives and the ICT Development Index (IDI) has the highest percentage (7 per cent) of digital natives. Second is Zimbabwe, where 6.1 per cent of the population are digital natives in 2012. The country has the world’s A comparison between countries’ ICT infrastructure and second highest share of young people aged 15-24, at 24.5 uptake – as measured by the IDI – and their proportion of per cent. digital natives shows a strong correlation (Chart 4.2). This suggests that enhancing ICT access and use should support Chart 4.1 shows the 15 countries with the largest estimated a growing level of digital nativism. proportion of digital natives among their population, as well as the ten countries with the smallest percentage Nevertheless, the correlation is not as strong as between of digital natives. The ten countries with the lowest the IDI and per capita gross national income (GNI p.c.), proportion of digital natives – all well below one in 100 and the results also reveal somewhat different patterns people – are mostly nations suffering from conflict, with compared with the IDI results (see Chapter 2). While a very low Internet penetration overall and which also number of the top IDI performers (such as the Nordic feature low on the IDI. Five of them – Central African countries, but also the Republic of Korea and Hong Kong, Republic, Democratic Republic of the Congo, Eritrea, China) also have high percentages of digital natives, other Ethiopia and Niger are among the ten countries with the countries with relatively larger youth populations display lowest IDI 2012 values, and Liberia ranks 146th out of 157 higher proportions of digital natives in relation to some on the IDI.14 Cambodia, on the other hand, ranks 120th on top IDI performers. the IDI, and has one of the largest shares of young people (aged 15-24) in the world. This suggests that, with the Countries well above the trendline, including Malaysia, right policies aimed at increasing Internet access outside Peru and Zimbabwe, have a relatively large number of 144 Measuring the Information Society 2013 Chart 4.2: Relationship between digital natives as a percentage of total population and the IDI value 16 Malaysia 14 Digital natives (%) 12 Peru 10 8 Zimbabwe 6 Qatar 4 Ukraine 2 Kazakhstan Armenia R² = 0.7755 0 0 1 2 3 4 5 6 7 8 9 IDI value Source: ITU. digital natives compared to their IDI levels. Countries of digital natives in each region varies from a high 10 per below the trendline, including Armenia, Kazakhstan and cent in the Americas to 1.9 per cent in Africa. Africa and Qatar, have a relatively low number of digital natives Asia and the Pacific have relatively low levels of digital compared to their IDI levels. While in the case of Qatar natives per capita compared with, for instance, Europe. this may be explained by the low proportion of youth (Chart 4.3, left). in the population (15-24 years olds made up only 12.5 per cent of the total 2012 population), the proportions There is, however, significant variation among countries of youth in Armenia and Kazakhstan are about the same within the regions, in particular within the Asia and Pacific as the world average (around 17 per cent), suggesting that more efforts could be undertaken to connect the region (where the proportion of digital natives ranges from 0.13 per cent in Timor-Leste to 13.6 per cent in New younger generation there. Zealand). The least variation among countries is found in Digital natives across income and geographic categories A country’s population of digital natives also resonates Europe. with its level of (economic) development. Some 4.2 per Studying the countries with very high and very low cent of the people residing in developing countries are percentages of digital natives among their population digital natives, while in the developed countries digital reveals some geographic and income patterns. High- natives account for 10 per cent of the population (Chart income countries that have high ICT levels (and rank 4.3, left). Looking at income groupings, there is a consistent high on the IDI), notably many European countries, seem increase in the percentage of digital natives when moving to have high percentages of digital natives, while low- from low- to high-income countries (Chart 4.3, right). The income countries, notably African countries, dominate significantly lower proportion of digital natives in low- the list with low levels. Indeed, upon closer analysis, the income countries than in high-income countries is primarily proportion of digital natives in a country varies according due to their relatively lower levels of ICT – and in particular to economic level and geographic region. The proportion Internet – uptake. 145 Chapter 4. Measuring the world’s digital natives 12 12 10 10 As % of total population As % of total population Chart 4.3: Digital natives as a percentage of total population, by region and level of development (left) and by income (right), 2012 8 6 4 2 0 8 6 4 2 0 High-income Upper-middle Lower-middle Low-income -income -income Source: ITU. Youth bulge combined with medium or relatively high levels of overall Internet use in 2007; or (ii) high levels of Internet use in For the purposes of this chapter, digital natives are defined 2007, resulting in high levels of five-year youth Internet use as youth with at least five years of experience in using the in 2012; or (iii) some combination of the two. Internet. Therefore, high proportions of digital natives in 2012 for a given country may be attributable to: (i) relatively Many countries are known to have a “youth bulge” or, in high number of young people aged 10-19 in 2007, resulting other words, a large proportion of young people relative to in a high number of young people aged 15-24 in 2012, their population as a whole. Studies on this phenomenon Chart 4.4: Population distribution by age group and gender, Egypt, 2010 Male Female 100+ 90-94 80-84 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0-4 5'000 4'000 3'000 2'000 1'000 Source: United Nations Population Division (UNPD). 146 0 0 Population (thousands) 1'000 2'000 3'000 4'000 5'000 Measuring the Information Society 2013 Chart 4.5: Percentage of population in the age group 15-24, by region and level of development (left), and income group (right), 2012 25 20 15 10 5 0 Youth as % of total population Youth as % of total population 25 20 15 10 5 0 Low-income Lower-middle Upper-middle High-income -income -income Source: ITU. have focused in particular on the developing world, where not unexpected given that, as mentioned, youth bulges are a combination of high fertility rates and declining infant particularly prevalent in developing nations. The percentage mortality has resulted in a large proportion of the population of population in the 15-24 age range in 2012 is depicted on comprising children and young adults. The population the map in Figure 4.3. pyramid depicted in Chart 4.4 shows a “classic” youth bulge based on 2010 population data from Egypt. A majority of Looking at income categories, it is apparent that the youth Egyptians are aged 25 or younger. bulge is most significant among the low-income and lower- Indeed, the percentage of a country’s population that falls why some low-income economies, such as Kyrgyzstan and within the digital native age range of 15-24 in 2012 varies Zimbabwe, where 15-24 year olds represent 21.5 and 24.4 significantly across the world, from a low of 9.7 per cent in per cent of the population, respectively, have relatively Japan to a high (youth bulge) of 24.5 per cent in Swaziland. high percentages of digital natives. Similarly, lower-middle- The global figure is 17 per cent. income economies Morocco, Egypt and Syria have relatively middle-income countries (Chart 4.5, right). This also explains high proportions of digital natives, owing in part to a large Differences between the proportions of youth within the age range 15-24 are significant between developed and developing countries: 12.3 per cent in the former compared with 18.2 per cent in the latter. Regionally, the percentage of the population in the 15-24 age range varies from 20.1 per cent in Africa to 12.4 per cent in Europe (Chart 4.5, left). In the Europe region, Germany, Greece, Italy, Portugal, Slovenia and Spain have a relatively small proportion of young population group. Digital natives compared with overall youth population Another way of looking at digital natives is by analysing their penetration as a percentage of the total youth population in a country. 15-24 year olds, below 11 per cent. In Cape Verde, Lao PDR, The variation in the proportion of a nation’s youth population Lesotho, Maldives, Micronesia, Swaziland, Tajikistan and that are estimated as having been Internet users for five years Zimbabwe, the percentage is at least twice as high. Africa, or more (i.e. are digital natives) in 2012 ranges from a high in particular, but also developing countries in Asia and the 99.6 per cent in the Republic of Korea to a low 0.6 per cent Pacific, Latin America and the Caribbean, and the Arab in Timor-Leste. In 21 countries (mainly high-income and States, have more of a youth bulge than Europe, which is developed), more than 90 per cent of 15-24 year olds have 147 Chapter 4. Measuring the world’s digital natives Figure 4.3: Percentage of population in the age group 15-24, 2012 1.0 - 10.0 11.0 - 15.0 16.0 - 20.0 21.0 - 25.0 Source: UNPD. 100 90 80 70 60 50 40 30 20 10 0 As % of youth population (15-24) As % of youth population (15-24) Chart 4.6: Digital natives as a percentage of youth (15-24), by region and level of development (left), and by income group (right), 2012 100 90 80 70 60 50 40 30 20 10 0 High-income Upper-middle Lower-middle Low-income -income -income Source: ITU. been online for at least five years. The figure varies significantly Further disaggregation by the four income categories shows according to region and economic level, between 9.2 per cent a range from 5.7 per cent in low-income countries to 89.6 in the Africa region and 79.1 per cent in Europe (Chart 4.6 left). per cent in high-income countries (Chart 4.6, right). The percentage of Internet users aged 15-24 with five or more While many low-income countries have a youth bulge, they years of experience ranges from 22.8 per cent in the developing also have relatively low numbers of young people who have world to 81.9 per cent in the developed world (Chart 4.6, left). been using the Internet for at least five years compared with 148 Measuring the Information Society 2013 Chart 4.7: Percentage of digital natives among youth Internet users, 2012 Youth Internet users Digital natives (five years or more using the Internet) Non digital natives (less than five years using the Internet) 14% 53% 47% 44% 56% 86% Developed (145 million) Developing (503 million) World (648 million) Source: ITU. higher-income countries. In high-income countries, most young people (89.6 per cent) fall into this category (and are thus digital natives); whereas in low-income countries, only about one in 20 young people qualify as digital natives. Age gaps: Internet use among youth compared with Internet use among the overall population Similarly, 8 out of 10 young people in Europe have five or more As mentioned before, a country will have a large proportion years of experience on the Internet, while only about one in 10 of digital natives if it has a youth bulge and at least medium young people in Africa have had similar network experience. levels of Internet user penetration; or if it has high and sustained Internet user penetration within its population as Comparing absolute figures for digital natives with the a whole. Nonetheless, there are also significant differences total numbers of youth Internet users in 2012, important among countries when it comes to the percentage of youth differences can be observed across regions. Chart 4.7 who are Internet users in relation to the percentage of the presents digital natives as a proportion of total connected overall population using the Internet. While some countries youth in 2012, for developed and developing regions, and have fairly uniform levels of Internet penetration across for the world as a whole. It shows that there are a large all age groups, in others, according to available data and number of young people who started using the Internet estimates, young people are much more networked than only more recently (i.e. less than five years ago). Out of a the population as a whole. total of 145 million young Internet users in the developed countries, 86.3 per cent are estimated to be digital natives, The previous section analysed the percentage of youth compared with less than half of the 503 million young with sustained Internet experience, comparing the Internet users in the developing world. Looking at the world figures around the globe. More online youth will naturally figure, slightly more than half (56 per cent) of young Internet lead to more digital natives. This section compares the users are considered digital natives. This means that there relative intensity of youth Internet use with a country’s are around 285 million (44 per cent) of “newcomers” (young overall Internet penetration. While the percentage of a people with less than five years of experience in using the country’s youth Internet use (for at least five years) is what Internet) in the world in 2012. drives its proportion of digital natives, any difference (or 149 Chapter 4. Measuring the world’s digital natives gap) between the levels of Internet use among young low of 1.0 in Iceland (where nearly everyone, from all age people, on the one hand, and the overall population, groups, is an Internet user, with only a tiny increase among on the other, will help explain to what degree these young people). The global average is 1.8, demonstrating digital natives are the early adopters, leading the way in a that, worldwide, youth are, on balance, nearly two times nation’s path towards becoming an information society. more networked than the global population as a whole. The extent to which digital natives drive a nation’s ICT uptake is important for understanding, learning from This ratio reveals a significant higher degree of Internet use and responding to the needs of these network-enabled among young people than in the population as a whole in youth. It is also important since it helps understand the most countries, but with variations between regions and potential that these networked youth represent in terms according to economic level. Looking at the six regions, of driving the information society, stimulating innovation the ratio ranges from 2.3 in Africa to 1.3 in Europe (Chart and harnessing the benefits of ICTs. 4.8, left). The average ratio for developing countries is 2 (i.e. twice as many young people are online than members The Internet user age gap can be calculated as the ratio of the population as a whole), while the average ratio for of Internet user penetration in the 15-24 age range to developed countries is 1.3. Looking at variations across the overall Internet user penetration. For the purpose of this four income categories, the ratio decreases significantly as section, 2012 Internet user figures are compared. A ratio of we move from low-income to high-income countries, as one would mean that Internet penetration among youth depicted in Chart 4.8, right. is exactly the same as for the population as a whole (no age gap); a ratio of 2 would mean that youth are twice as In every country of the world, the 15-24 year olds are more networked as the overall population; and so forth. likely to be Internet users, suggesting that the young are drivers of the information society. In most of the world’s Table 4.2 shows Internet user penetration for youth and least developed countries, young people are nearly three for the total population, as well as the calculated ratio times more likely than the general population to be using between these two penetration rates (the age gap), for the Internet. This is the case, for example, in Timor-Leste, each country. The ratios range from a high of 2.8 in Eritrea Myanmar, Burundi, Sierra Leone and Somalia, even if Internet (nearly three times as much Internet use among young penetration in these countries remains very low. In highly people as compared with the population as a whole) to a populated countries such as Bangladesh, Pakistan and India, 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.0 Ratio of youth Internet usage to overall Internet usage Ratio of youth Internet usage to overall Internet usage Chart 4.8: Ratio of youth (15-24) Internet usage to overall Internet usage, by region and level of development (left), and by income group (right), 2012 2.5 2.0 1.5 1.0 0.5 0.0 Low-income Source: ITU. 150 Lowermiddleincome Uppermiddleincome High-income Measuring the Information Society 2013 Table 4.2: Internet user penetration, youth and total population, 2012 Economy Korea (Rep.) Germany United Arab Emirates Switzerland France Australia Belgium Canada United Kingdom United States Austria Bahrain Qatar Slovakia Kuwait Japan Estonia Ireland New Zealand Finland Luxembourg Denmark Netherlands Czech Republic Sweden Singapore Latvia Norway Israel Barbados Hong Kong, China Iceland Hungary Spain Bahamas Malta Slovenia Lithuania Malaysia Bosnia and Herzegovina Poland Macao, China Portugal TFYR Macedonia Croatia Chile Lebanon Cyprus Brunei Darussalam Oman Trinidad & Tobago Italy Montenegro Greece Argentina Bulgaria Uruguay Morocco Albania Azerbaijan Saudi Arabia Kazakhstan Russian Federation Romania Brazil Colombia Saint Lucia Serbia St. Vincent and the Grenadines Costa Rica Belarus Jamaica Georgia Panama Turkey Dominican Rep. Egypt Venezuela Moldova China Grenada Tunisia Mauritius Jordan South Africa Viet Nam Armenia Maldives Mexico Peru Youth Internet user penetration* 99.6 99.6 99.6 99.6 99.6 99.6 99.6 99.5 99.5 99.5 99.5 99.4 99.4 99.4 99.3 99.3 99.2 99.2 99.2 99.0 98.8 98.5 98.5 98.4 98.3 98.2 98.2 98.0 98.0 98.0 97.8 97.7 97.5 97.5 97.4 96.8 96.8 95.9 94.9 94.6 94.5 94.1 93.9 93.4 93.3 92.4 92.2 92.1 91.6 91.4 91.1 90.0 89.1 88.5 88.3 87.8 87.8 87.7 87.4 87.0 86.8 86.3 86.2 83.2 83.1 82.2 81.9 81.4 80.8 80.8 80.1 79.7 78.6 78.3 78.2 78.1 77.1 77.0 76.3 75.0 74.8 74.0 74.0 73.5 73.5 71.6 71.2 70.9 70.3 70.0 Total Internet user penetration 84.1 84.0 85.0 85.2 83.0 82.3 82.0 86.8 87.0 81.0 81.0 88.0 88.1 80.0 79.2 79.1 79.0 79.0 89.5 91.0 92.0 93.0 93.0 75.0 94.0 74.2 74.0 95.0 73.4 73.3 72.8 96.0 72.0 72.0 71.7 70.0 70.0 68.0 65.8 65.4 65.0 64.3 64.0 63.1 63.0 61.4 61.2 61.0 60.3 60.0 59.5 58.0 56.8 56.0 55.8 55.1 55.1 55.0 54.7 54.2 54.0 53.3 53.3 50.0 49.8 49.0 48.6 48.1 47.5 47.5 46.9 46.5 45.5 45.2 45.1 45.0 44.1 44.0 43.4 42.3 42.1 41.4 41.4 41.0 41.0 39.5 39.2 38.9 38.4 38.2 Age gap** 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.2 1.2 1.1 1.1 1.2 1.3 1.3 1.3 1.3 1.1 1.1 1.1 1.1 1.1 1.3 1.0 1.3 1.3 1.0 1.3 1.3 1.3 1.0 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Economy Uzbekistan Philippines Ecuador Tonga Cape Verde Suriname Guyana Bolivia Fiji Ukraine Nigeria Kenya Paraguay Thailand Iran (I.R.) Micronesia Cuba El Salvador Bhutan Belize Syria Kyrgyzstan S. Tomé & Principe Sudan Swaziland Libya Senegal Sri Lanka Honduras Yemen Ghana Zimbabwe Angola Mongolia Guatemala Indonesia Algeria Uganda Tajikistan Equatorial Guinea Nicaragua Zambia Tanzania Namibia Samoa India Gambia Botswana Nepal Haiti Lao P.D.R. Vanuatu Pakistan Gabon Djibouti Rwanda Turkmenistan Iraq Solomon Islands Bangladesh Congo Comoros Cameroon Afghanistan Mauritania Cambodia Mozambique Lesotho Malawi Togo Benin Liberia Burkina Faso Central African Rep. Guinea-Bissau Côte d'Ivoire Papua New Guinea Mali Chad Madagascar Congo (Dem. Rep.) Guinea Ethiopia Niger Somalia Sierra Leone Burundi Myanmar Timor-Leste Eritrea Youth Internet user penetration* 67.8 67.4 65.9 65.5 65.4 65.3 64.8 64.6 64.0 63.9 62.7 61.6 53.9 53.0 52.2 52.1 51.6 51.4 51.3 50.5 49.4 45.0 44.7 43.7 43.3 41.7 40.5 38.8 38.5 37.2 36.6 36.5 36.3 35.2 34.5 33.3 33.0 32.0 31.6 30.5 29.6 29.6 28.8 28.5 28.5 27.8 27.5 25.6 24.9 24.3 24.1 23.8 22.4 19.6 18.9 18.4 16.6 16.4 16.2 14.6 14.2 13.9 13.3 12.8 12.6 11.6 11.4 10.9 10.3 9.5 9.1 9.1 8.9 7.3 7.0 5.9 5.7 5.4 5.2 5.1 4.3 3.8 3.8 3.6 3.6 3.4 3.2 2.8 2.5 2.2 Total Internet user penetration 36.5 36.2 35.1 34.9 34.7 34.7 34.3 34.2 33.7 33.7 32.9 32.1 27.1 26.5 26.0 26.0 25.6 25.5 25.4 25.0 24.3 21.7 21.6 21.0 20.8 19.9 19.2 18.3 18.1 17.4 17.1 17.1 16.9 16.4 16.0 15.4 15.2 14.7 14.5 13.9 13.5 13.5 13.1 12.9 12.9 12.6 12.4 11.5 11.1 10.9 10.7 10.6 10.0 8.6 8.3 8.0 7.2 7.1 7.0 6.3 6.1 6.0 5.7 5.5 5.4 4.9 4.8 4.6 4.4 4.0 3.8 3.8 3.7 3.0 2.9 2.4 2.3 2.2 2.1 2.1 1.7 1.5 1.5 1.4 1.4 1.3 1.2 1.1 0.9 0.8 Age gap** 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.5 2.5 2.5 2.5 2.5 2.5 2.6 2.6 2.6 2.6 2.6 2.6 2.7 2.7 2.8 Note: GNIto per capita is based onto the World Bank’s Atlas Method. Note: *The * Refers population aged 15 24. ** Ratio of youth (15-24) Internet users to overall Internet users. Source: Source: ITU. ITU. 151 Chapter 4. Measuring the world’s digital natives Figure 4.4: Ratio of youth (15-24) Internet users to overall Internet users, 2012 1.0 - 1.5 1.6 - 2.0 2.1 - 2.5 2.6 - 3.0 Source: ITU and UNPD. the ratio is also high, between 2.2. and 2.3. The map of the Indeed, it is a reasonable conjecture that, as the age gap ratio is shown in Figure 4.4 increases, so too do the most dramatic properties ascribed to digital natives by some proponents – namely, that they Clearly, youth in low-income and lower-middle-income think differently and are a breed apart. countries as well as in many African and Southern Asian countries are the relatively most networked – they are the What this finding points to is that it is the countries with early adopters leading their countries in Internet use. This the biggest age gaps (which are primarily in the developing factor, along with the additional youth bulge described world) that are liable to be those most impacted by their above, points to the significance, not just in number, but in importance, of digital natives especially in low-income and lower-middle-income countries and countries of Africa and Southern Asia. If youth are leading digital adoption within a country, then they are likely to: • have an online life experience with which the rest of the country’s population will not be so familiar; • have higher levels of expertise and digital literacy compared with the population as a whole; • 152 digital natives. Paradoxically, while most of the literature on digital natives focuses on high-income countries, the most important location for the application of this concept is likely to be the developing world. These findings also highlight the need for further research to analyse how digital natives think, work and do things differently, and whether this should have an impact on the way digital natives are taught or employed. Age gap and youth bulge Finally, some countries have both a youth bulge and a relatively more networked youth. In fact, a country’s youth bulge and have potentially adopted a more networked mindset the age gap are strongly correlated (the correlation coefficient (as described in some of the literature above) than the between the two indicators is 0.78). Relatively small youth wider population. bulges and low age gap ratios (meaning that young people Measuring the Information Society 2013 Chart 4.9: Relationship between the ratio of youth (15-24) Internet users to overall Internet users (y-axis) and percentage of total population aged 15-24 (x-axis), by income group, 2012 3.0 Ratio of youth Internet users to overall Internet users 2.5 2.0 1.5 1.0 High-income Upper-middle-income Lower-middle-income 0.5 Low-income 0.0 8 10 12 14 16 18 20 22 24 26 % of youth population (15-24) Note: Linear fit. Shaded regions depict 95 per cent confidence levels of fit. Source: ITU and UNPD. are not particularly more networked) occur in high-income income groupings. For these countries, young people truly countries, while the reverse is true for low-income countries. are driving Internet use. However, and interestingly, as the youth bulge increases in low-income countries, the ratio of Chart 4.9 portrays the relationship between a country’s youth youth Internet users to the users in the general population bulge and the age gap, with countries grouped according actually declines, in contrast to what occurs in the other to the four income levels. The bottom three lines represent three economic groups, which show the opposite trend. countries in the high-income, upper-middle-income and This might be the case in low-income countries because lower-middle-income groups. What is clear is that, for each the youth bulge in those settings occurs particularly in of these groups, the lower the income levels the higher the their most under-resourced (e.g. rural) areas, i.e. in the relative degree of Internet use among youth. Furthermore, the contexts and communities least able to gain Internet access. greater the youth bulge for these income groups, the more If this is true, it implies that those particular settings are networked the youth are relative to the country as a whole. characterized at the same time by a higher percentage of youth and a lower level of overall Internet use (including Finally, the graph shows that the youth in low-income among young people) in comparison with the country’s countries (the top line) are indeed the most relatively more developed areas. Verifying this hypothesis will require networked in comparison with the countries in the other further research, as it carries important policy implications. 153 Chapter 4. Measuring the world’s digital natives Digital natives and educational factors of digital natives brings out a number of interesting The above analysis makes clear that the world is filled enrolment at the secondary and tertiary levels17 and a (unevenly) with digital natives and that in low-income country’s proportion of digital natives.18 The age range countries in particular young people are the most networked for digital natives, namely15-24, places them within these and are driving Internet penetration. Encouraging and stages of education. What can be seen overall is that, as nurturing these digital natives is important everywhere, but secondary and tertiary school enrolment levels go up, so especially so in the developing world, where they are the too does the percentage of digital natives. This suggests early Internet adopters. that secondary and tertiary education plays a positive role linkages. Chart 4.10 shows the relationship between school in enhancing levels of digital nativism, although this may There are many ways in which a country might nurture also be the outcome of additional factors. For instance, and expand its population of digital natives. One perhaps all of these figures are closely related to a country’s level obvious solution is simply to enhance the availability and of economic development (a factor at best exogenous to affordability of Internet access, for instance through ensuring the digital native model). competition and a robust ICT marketplace. Indeed, a nation’s proportion of digital natives correlates strongly with all of While digital natives’ age range places them contem- the major ICT indicators16 (e.g. mobile-phone subscriptions, poraneously at the secondary or post-secondary edu- Internet usage, household access to a computer and to cation levels, arriving at these stages of schooling would Internet). As shown above, there is a strong relationship have required them to pass through primary school. And, between a nation’s ICT infrastructure and uptake (as indeed, the level of primary school enrolment measured measured by the IDI) and the percentage of its population in a year in which many of these digital natives would that are digital natives. have been of primary school age correlates with levels of digital nativism. Chart 4.11 portrays the relationship In addition to ICTs, education, which is also taken into between primary school enrolment in 2002 and the account in the IDI calculation (see Chapter 2), is another percentage of the population categorized as digital important correlate to digital nativism. An analysis of natives in 2012. While the relationship is significant and the major educational indicators, using the most recent positive,19 it is not at all as strong as the relationship with available data, and their relationship to a nation’s share secondary and tertiary school enrolment (also reflecting 160 120 140 100 Gross tertiary enrolment ratio Gross secondary enrolment ratio Chart 4.10: Relationship between digital natives as a percentage of total population and school enrolment, by education level, 2012 120 100 80 60 40 20 0 -20 60 40 20 0 -20 -40 -40 -5 0 5 10 15 Digital natives as a % of total population Note: Linear fit. Shaded regions depict 95 per cent confidence levels of fit. Source: ITU and UNESCO Institute for Statistics (UIS). 154 80 -5 0 5 10 15 Digital natives as a % of total population Measuring the Information Society 2013 Chart 4.11: Relationship between digital natives as a percentage of total population, 2012 and primary enrolment, 2002 This suggests that, while primary school enrolment is obviously a critical pre-condition for increasing a country’s proportion of youth who are digital natives, Gross primary enrolment ratio it is ultimately by enhancing the level of secondary 160 and tertiary school enrolment that the most significant 140 positive impact on the degree of digital nativism is likely 120 to be achieved. 100 Another interesting relationship exists between a country’s 80 level of digital nativism and gender balance within school 60 enrolment. Chart 4.12 plots the ratio of female to male 40 enrolment in secondary and tertiary schools against 20 -5 0 5 10 15 Digital natives as a % of total population the percentage of digital natives in a country. There is a statistically significant relationship between digital nativism and the ratio of females to males in secondary school and Note: Linear fit. Shaded regions depict 95 per cent confidence levels of fit. Source: ITU and UIS. tertiary school.20 While it is too early to draw firm conclusions from this particular observation, it is possible that girls are more likely to gain access to the Internet from education facilities. This would require equal access to education for both boys and girls. The analysis shows that the higher the the fact that overall primary school enrolment rates are enrolment of females in secondary and tertiary schools, the much higher and more homogeneous across countries higher a country’s share of digital natives. These findings will than enrolment rates for higher levels of education). require additional research. Chart 4.12: Relationship between digital natives as a percentage of total population and ratio of females to males in school enrolment, by education level, 2012 1.5 Gender parity index for gross secondary enrolment ratio Gender parity index for gross tertiary enrolment ratio 2.5 1.0 0.5 0.0 2.0 1.5 1.0 0.5 0.0 -5 0 5 10 15 Digital natives as a % of total population -5 0 5 10 15 Digital natives as a % of total population Note: Linear fit. Shaded regions depict 95 per cent confidence levels of fit. Source: ITU and UIS. 155 Chapter 4. Measuring the world’s digital natives 4.5Conclusions Digital nativism is not homogeneous across the globe, While the concept of digital native has received considerable development. Indeed, the estimated proportion of a attention, been defined in various ways and attracted country’s total population that are digital natives varies a certain amount of criticism, it seems very clear that from a low of 0.13 per cent to a high of 16 per cent, with “digital media are changing the way young people learn, a global value of 5.2 per cent. Aggregating by region, the play, socialize, and participate in civic life” (Ito et al., 2008). share of digital natives varies from a high of 10 per cent in Although more research is needed in order to understand the Americas to 1.9 per cent in Africa. Some 4.2 per cent of the impact that digital natives have in driving the information people in developing nations are digital natives, as against society, and on the way digital natives learn, work and do 10 per cent in the developed countries. and varies by country, region and level of economic things, there is general agreement that young people learn and adapt to ICTs quickly. In other words, in their hands and A country will have a high percentage of digital natives if with their minds, ICTs become a particularly powerful tool. it has: relatively high levels of youth and at least medium levels of Internet use; high levels of Internet use; or some This chapter defines a digital native as a networked youth combination of the two. between the age of 15 and 24, with five or more years of experience using the Internet. It then develops a model Many countries have a large proportion of young people that operationalizes this definition, and applies the model relative to their population as a whole, or, in other words, to datasets in order to quantify the world’s digital natives, a youth bulge. Broken down by region, the proportion of country by country. The chapter thus offers the first indicator, the population in the 15-24 age range varies from 20.1 per and the first quantified mapping, of the world’s digital cent in Africa to 12.4 per cent in Europe. Variations are also natives. significant across economic groups, with 18.2 per cent of the developing world in this age range as against just 12.3 According to the model, in 2012 there were around 363 per cent of the developed world. The youth bulge in Africa million digital natives out of a world population of nearly and developing economies should be a core driver of 7 billion. This means that 5.2 per cent of the world’s the level of digital nativism in those countries. population and 30 per cent of 15-24 year olds engaged in sustained activity online. The digital natives are, globally Furthermore, young people are more likely to be online than speaking, a minority of today’s youth. This is primarily due the general population as a whole. The proportion of the to relatively low Internet usage rates in many developing youth population who are young Internet users with five or countries with large (youth) populations; but also to the fact more years of experience ranges from a high of 99.6 per cent that ICTs are a fairly new phenomenon and that, back in to a low of 0.6 per cent. Aggregation by income categories 2007, by which time young people had to be online in order shows shares ranging from 5.7 per cent in low-income to be considered digital natives today (needing at least five countries to 89.6 per cent in high-income countries. The years of experience), Internet penetration was relatively low: high degree of sustained youth Internet use drives the in 2007, only 21 per cent of the global population was online. level of digital nativism, in particular in Europe, North America and the developed economies in general. Over the past five years, Internet usage has increased significantly in the developing world, from 11.9 percent in The age gap can be calculated as the ratio of a country’s 2007 to 30.7 per cent in 2012. This report has shown that 53 Internet user penetration in the 15-24 age range to its per cent of today’s young Internet users in the developing overall Internet user penetration. Values for this ratio range world do not yet qualify as digital natives. Within the next from a high of 2.8 to a low of 1.0, with a global average five years, therefore, the digital native population of 1.8. The average ratio for developing countries is 2 (i.e. in the developing countries will more than double, twice as many young people are online in comparison assuming no drop-outs from Internet usage among the with the population as a whole), while the average ratio youth population. for developed countries is 1.3. Therefore, the age gap is 156 Measuring the Information Society 2013 most salient in the developing world, where digital of digital nativism. Secondary school and tertiary education natives are vigorously leading their nation’s use of enrolments also correlate strongly with the percentage of the Internet. digital natives within a country. It is reasonable to conclude that, as the age gap increases, Finally, the results of this analysis yield distinct conclusions in so too do the most dramatic properties ascribed to digital respect of developed and developing nations. In developed natives by some proponents – namely that they think economies, the majority of young people are already differently and are a breed apart. online, as are most of the population as a whole. As a result, What this finding points to is that the countries with the biggest Internet user age gaps (which are primarily in the developing world) are likely to be those most impacted by their digital natives. Paradoxically, while most of the literature on digital natives focuses on highincome countries, the most important location for the application of this concept is likely to be the developing world. These findings also highlight the need for further research to analyse how digital natives think, work and do things differently, and whether this should have an impact digital nativism may confer less of a driving role or unique position on youth – whether in relation to their peers or to the population as a whole. By contrast, for the developing economies, the findings may offer much more food for thought. Digital natives are driving ICT usage in many of the developing nations, insofar as young people are inimitably online relative to the population as a whole. As the early adopters, they are already concentrating skills and experience, and encapsulate many of the most distinct traits of the digital native. Analysis from the model on the way digital natives are taught or employed. suggests that sustained enhancement of ICT infrastructures, In addition, there is a strong correlation between a nation’s enrolments, especially among females, are ways to boost ICT infrastructure and uptake (as measured, for example, by levels of digital nativism even further. If young people are the IDI results) and the percentage of its population that are indeed the tip of the developing world’s digital spear, then digital natives. Enhancing infrastructures and improving the this is all the more reason to focus on them, learn from them affordability of ICT services should support a growing level and grow with them. together with an increase in secondary and tertiary school 157 Chapter 4. Measuring the world’s digital natives Endnotes The 15-M Movement (Movimiento 15-M), which started on 15 May 2011, is part of a series of demonstrations in Spain whose origin can be traced to social networks and civilian digital platforms. The movement demands a radical change in Spanish politics, as protesters do not consider themselves to be represented by any traditional party nor favoured by the measures approved by politicians. Yo Soy 132 is a Mexican protest movement, also closely linked to social networks, centred around the democratization of the country and its media. For more information, see http://en.wikipedia.org/wiki/2011%E2%80%9312_Spanish_protests and http://en.wikipedia.org/wiki/Yo_Soy_132. 1 Region refers to the ITU/BDT regions, see http://www.itu.int/ITU-D/ict/definitions/regions/index.html. 2 References to income levels are based on the World Bank classification, see http://data.worldbank.org/about/country-classifications/country-and-lending-groups. 3 Telefónica, in partnership with the Financial Times, commissioned 12 171 online quantitative interviews among young people aged 18-30, across 27 countries in six regions, including North America, Latin America, Western Europe, Central and Eastern Europe, Asia and the Middle East, and Africa. The survey was carried out between 11 January and 4 February 2013, and included millennials from Argentina, Australia, Brazil, Canada, Chile, China, Colombia, Czech Republic, Egypt, France, Germany, India, Israel, Italy, Japan, Saudi Arabia, Republic of Korea, Mexico, Peru, Poland, Russian Federation, South Africa, Spain, Turkey, United Kingdom, United States and Venezuela. Country sample sizes represented in the global number were weighted by the percentage of the population in each country with access to the Internet. See more at: http://survey.telefonica.com/survey-findings/#sthash.WAVOxBcm.dpuf. 4 See http://survey.telefonica.com/connected-yet-divided-telefonica-survey-of-the-millennial-generation-reveals-digital-natives-are-optimisticabout-their-individual-futures-despite-splits-across-political-economic-and-technology-ou/. 5 However, Livingstone and Helsper’s (2007) research suggests that some young people choose not to be submerged, as shown by findings that low and non-users have wholly different priorities and cannot even contemplate how the Internet could become embedded in their daily routines. 6 See, for example: Bekebrede et al. (2011); Bennett, Maton and Kervin (2008); Bullen and Morgan (2011); Guo, Dobson and Petrina (2008); Jones and Cross (2009); Kennedy et al. (2007, 2008, 2009); Pedró (2009); Reeves and Oh (2008); Selwyn (2009); Smith (2009); van den Beemt et al. (2010). 7 See, for example: Brown and Czerniewicz (2010); DiMaggio and Hargittai (2001); Facer and Furlong (2001); Hargittai and Hinnant (2008); Kennedy et al. (2008); Livingstone and Helsper (2007); Oliver and Goerke (2007); Selwyn (2009); and Thinyane (2010). 8 The function is a quadratic function based on Internet user penetration data available for the 15-24 age group for 70 countries for at least one year during the period 2009 to 2011. Internet user data collected from official sources (representative household surveys) are scarce in many developing countries (out of the 70 countries, 28 are developing), as are, a fortiori, data broken down by age. Therefore, data from various years had to be used. When developing the function, patterns were identified according to level of Internet usage in countries but not according to specific years, so various years could be combined. The R-squared of this quadratic function is 0.958. 9 ITU collects ICT use statistics by age groups using the following breakdowns: <15, 15-24, 25-74, >74. 10 A selected number of countries collect data for the age group 10-14, and these data confirmed the assumption that Internet user penetration rates for the two age groups (10-14 and 15-24) are similar. For most of these - developed and developing - countries, Internet user penetration in both groups was almost the same (with a ratio of 1:1). However, for some developing countries, Internet user penetration in the age group 15-24 was slightly higher (with a ratio of 1.2:1). Since the penetration levels in many developing countries were still very low in 2007, the impact on the calculation of the global figures for the number of digital natives should be relatively small, although the country figure could be slightly overestimated. 11 Of the 180 countries included in the analysis, 2007 survey data on youth Internet user penetration was available for 42 countries; the figures for the remaining 138 countries were estimated using the function presented in Box 4.3. Some countries were excluded because there are either no population statistics broken down by age or no overall Internet use figures available. The sum of their population represents less than 1 per cent of the world population. 12 See http://www.koreatimes.co.kr/www/news/nation/2012/05/113_111504.html. 13 Neither Sierra Leone nor Timor-Leste are included in the IDI 2012. 14 See http://www.itu.int/net/pressoffice/press_releases/2013/CM04.aspx#.UcrdTfn0Geg. 15 Correlation coefficients between digital natives as a percentage of the total population in 2012 and the IDI 2012 indicators are as follows: 0.76 with fixed-telephone subscriptions per 100 inhabitants; 0.62 with mobile-cellular subscriptions per 100 inhabitants; 0.87 with percentage of households with a computer; 0.86 with percentage of households with Internet; 0.9 with percentage of individuals using the Internet; 0.8 with fixed (wired)broadband subscriptions per 100 inhabitants; and 0.58 with wireless-broadband subscriptions per 100 inhabitants. For all indicators, n=154 and p values are below 0.0001. 16 Gross school enrolment is measured as the ratio of the number of pupils or students enrolled in a given level of education, regardless of age, and the official school-age population corresponding to the same level of education. 17 Correlation coefficients between digital natives as a percentage of the total population and gross enrolment ratios are: 0.76 with secondary enrollment, and 0.74 with tertiary enrolment (r(153) =0.76, p<0.0001) and (r(153)=0.74, p<0.0001 respectively). 18 The correlation coefficient between digital natives as a percentage of the total population and gross primary enrolment ratio is 0.27 (r(139)=0.27, p=0.0009). 19 The correlation coefficients between digital natives as a percentage of the total population and the ratio of females to males in secondary and tertiary school are both significant at 0.40 (r(122)=0.40, p<0.0001 and r(113)=0.40, p<0.0001 respectively). 20 158 Measuring the Information Society 2013 Chapter 5. Digital TV broadcasting trends Television transmission has long been a regular electronic (content creators, transmission networks and viewers) communication service, although it has undergone several have changed considerably since the first broadcasts of technological changes throughout its history (Box 5.1). TV signals. In the original scheme, TV stations created and Together with fixed telephony and radio broadcasting, packaged the content, which was then broadcast using the it is among the most enduring ICT services. However, analogue terrestrial transmission network. Viewers received unlike radio and fixed telephony, TV has seen no decline the signal through an antenna at their home, and watched in penetration, and almost 80 per cent of households TV in their living rooms. worldwide had a TV by end 2012. This means that TV signals are received by a vast majority of the global Today, the audiovisual landscape is much more diverse: population, making them much more pervasive than other multichannel TV offers3 are widely available; traditional linear ICTs. Moreover, TV has maintained its relevance as a mass content (i.e. TV channels) coexists with non-linear content, communication channel, and continues to be one of the such as catch-up TV and video-on-demand;4 user-generated main ways of conveying information to a large audience.1, 2 content and other non-traditional sources are enriching the audiovisual offer, blurring the boundaries between TV The importance of TV access as a development enabler has and video and between professional and non-professional also been acknowledged in the context of the World Summit content. Viewers do not only consume audiovisual content on the Information Society (WSIS). Among the ten global in their living rooms, but also on the move, using a mobile targets for the information society identified in the Geneva phone, a tablet or a laptop computer, which are becoming Plan of Action, Target 8 specifically aims “to ensure that all more and more frequent complements to the traditional of the world’s population have access to television and radio TV set.5 services” (ITU, 2005). TV is thus recognized as an important means of providing information to people, expressing The telecommunication networks that distribute TV signals national identity, providing a vehicle for domestic content have evolved considerably to meet the demands of content and fulfilling educational purposes (ITU, 2010). The inclusion producers and viewers, and have also become more efficient of TV in international development targets and in national in the use of scarce resources (such as spectrum). Several e-strategies has called attention to the issues associated technologies have been progressively added as alternatives with the measurement of TV uptake and the evolution of to traditional terrestrial broadcasting networks (Figure 5.1): the different TV transmission platforms (Box 5.2). cable TV (CATV),6 direct-to-home satellite (DTH),7 Internet Protocol TV (IPTV),8 etc. In parallel, there has been a gradual Telecommunication networks provide the means of shift towards digital technologies, which is still ongoing transmitting TV content to viewers, thus linking audiovisual with the switchover of terrestrial broadcasting networks to content creators with their public. The three elements digital technologies. 159 Chapter 5. Digital TV broadcasting trends Box 5.1: Historic developments in TV broadcasting – North America and Europe The United Kingdom’s BBC began the first regular TV-broadcasting cable operators by virtue of their ability to provide a larger transmissions in November 1936. Cable networks started to spring number of channels and use spectrum more efficiently. Satellite- up in the United States in 1948, principally to serve households TV operators were able to deploy digital TV rapidly since they that could not receive over-the-air terrestrial signals. The number were not subject to the same obligation as cable operators (in of households with a TV set increased as prices fell, networks terms of both cost and time) to build out new infrastructure. expanded and more content became available. The switchover from analogue to digital TV signals is being Cable-TV services requiring a subscription commenced in the US in completed with the upgrade of cable and terrestrial broadcasting 1950. Subscription TV involves the encryption (scrambling) of a TV networks to digital technology. The process is particularly signal that is decrypted in the subscriber’s home using a set-top box. complex in the case of terrestrial broadcasting networks, because Cable networks in the US were restricted in terms of the content they could offer, partly owing to their limited network capacity, but also because the channels provided were local. This changed in the late 1970s with the rapid growth of “superstations” (such as CNN), some of which achieved regional or near-national it requires a national strategy to free, reallocate and then reassign the spectrum used for terrestrial TV transmissions. In addition, since in many countries terrestrial broadcasting networks are the most common means of receiving TV signals, awareness-raising campaigns need to be carried out to educate the population on coverage, being distributed by many cable networks. the practicalities of the digital switchover. Cable enjoyed a multichannel TV monopoly in North America Despite the technical challenges of the digital switchover, there until the mid-1970s, when satellite TV (DTH) was introduced. Even then competition was limited, because households receiving satellite TV required a large dish. Most homes receiving satellite TV were in rural areas – outside the reach of cable-TV networks. Satellite TV started to offer stiffer competition to cable in the mid-1980s in North America and Europe, with the introduction of both smaller dishes and subscription-based services. These dishes received analogue signals. are many advantages that justify the effort. Digital signals are more robust than analogue ones, thus improving sound and image quality. Moreover, they use spectrum more efficiently than analogue transmissions, thus allowing more TV programmes to be accommodated within the same amount of spectrum thanks to digital video compression. Governments can then decide to allocate the freed spectrum (the “digital dividend”) for additional TV channels or for other telecommunication services, such as wireless broadband (Table 5.1). The digital dividend is of Satellite-TV operators quickly adopted digital transmission exceptional value because it is in the low range of the spectrum, technology in the early 1990s, giving them an advantage over and thus particularly suited to covering large areas. The Internet is also starting to have an impact on the audiovisual sector, particularly through over-the-top (OTT) audiovisual content providers, such as YouTube or Netflix. This adds to IPTV offers, which allow telecommunication operators to include TV services as part of their bundles (fixed telephony, Internet and TV), while ensuring that consumers have a guaranteed quality of service in the TV signal they receive. Conversely, an increasing number of TV sets, set-top boxes, game consoles and DVD players are equipped to be connected to the Internet, and include applications that link consumers to audiovisual content over the Internet (OECD, 2013).9 This confirms the trend towards “the convergence of telecommunications and broadcasting into a multiplatform audiovisual environment” (OECD, 2012b; OECD, 2011). 160 The recent changes experienced in the audiovisual sector have also had an effect on revenue streams, which can be classified into three broad categories according to their origin: advertisement revenues, subscription revenues and public funding. The latter may come from a budget allocation or, in some cases, may be levied directly from people receiving the TV signal.10 Free-to-air (FTA) TV is financed through advertisement and/or public funding, while pay TV depends on subscription revenues, which in some cases are complemented with advertisement revenues. The growing number of players and technological platforms are altering the balance between the different revenue flows in the sector. This chapter takes a closer look at the current state of play and evolution of TV-distribution services, with a focus on Measuring the Information Society 2013 Box 5.2: Measuring TV uptake A complete analysis of the uptake of TV services requires data ‘Proportion of households with multichannel television service, from two distinct sources: surveys on ICT access and use by by type of service’. The latter was recently discussed and agreed households, and administrative records from operators. These by EGH.12 can be complemented with data from third sources, such as Administrative data collected from operators capture only Internet-TV content providers. TV services requiring a subscription. Despite this limitation, ITU has been collecting data on TV indicators since the 1960s. The operators can often provide more accurate data on the TV initial indicators – ‘Television-equipped households’ and ‘Number platform and technology behind each subscription. These of TV sets’ – have been replaced by newer indicators to reflect details may not be known to subscribers, and are thus more the changes in TV services and technologies. The Expert Group difficult to collect from household surveys. EGTI is reviewing on ICT Household Indicators (EGH) and the Expert Group on the two administrative indicators currently collected by ITU on Telecommunication/ICT Indicators (EGTI) have been reviewing TV services: ‘Number of terrestrial multichannel TV subscriptions’ the list of ITU indicators on TV services.11 and ‘Direct-to-home (DTH) satellite antenna subscriptions’.13 The Nationally representative household surveys and censuses are results of the discussion will be presented at the 11th World the usual vehicles for obtaining reliable data on household Telecommunication/ICT Indicators Symposium (WTIS), to be access and uptake of TV services, particularly for TV services held in Mexico City, Mexico, from 4 to 6 December 2013.14 that do not require a subscription and hence cannot be measured from the supply side. ‘Proportion of households At the last World Telecommunication/ICT Indicators Meeting with a TV’ is the basic indicator for measuring both free and (WTIM),15 which took place in September 2012, in Thailand, paid TV access. It is included in the Partnership on Measuring a session was devoted to the measurement of digital ICT for Development’s list of Core ICT Indicators (Partnership, broadcasting.16 The discussions at the 10th WTIM and the work 2010), and it is also part of the statistical framework defined to of EGH and EGTI on the subject are expected to improve data measure the WSIS targets (Partnership, 2011). A complementary collection on TV services, and raise awareness of its relevance in indicator also included in the WSIS statistical framework is measuring and analysing the information society. Figure 5.1: Main TV-distribution technologies Analogue Digital Analogue terrestrial broadcasting wireless Analogue cable TV (CATV) Digital terrestrial TV broadcasting (DTT) wired satellite Digital cable TV (CATV) free to air Internet Protocol TV (IPTV) paid Direct-to-home satellite (DTH) bundled with broadband Source: ITU. 161 Chapter 5. Digital TV broadcasting trends digital technologies. First, it presents and analyses data on multichannel TV services, and the growth of digital TV. It then goes on to examine TV services by type of platform, with a view to highlighting the main technological trends. The analysis is supplemented by a presentation of the most salient features of TV reception in each region. The chapter also looks at the current status of the digital switchover, and recent trends in OTT audiovisual distribution. Finally, the analysis is concluded with some regulatory and policy considerations regarding digital broadcasting. of households during the same period (66 million). This confirms that TV reach is expanding and that more and more households are gaining access to TV services. In the developed world, virtually all households had a TV by 2008, while in developing countries 69 per cent of households had a TV. In the four-year period between 2008 and 2012, most growth took place in the developing world, with the addition of 87 million more households with a TV, thus reaching 72 per cent of households with a TV by 2012. In developed countries, where the margin for growth was limited, the percentage of households with a 5.1 Growth of households with a TV Television reach is increasing as a greater proportion of homes in developing countries buy TV sets. Rising disposable incomes in the developing world and bigger economies of scale are making sets more affordable. Moreover, television has become more attractive as more channels have been granted licences.17 It is estimated that there were 1.4 billion households with at least one TV set globally by end 2012, corresponding to 79 per cent of total households.18 Around 95 million new households with a TV were added between 2008 and 2012, clearly outpacing the growth in the global number TV was maintained during the four year period (Chart 5.1). This proves that even in developed countries TV services continue to be relevant in today’s information society. Developing countries accounted for 66 per cent of total households with a TV by end 2012. This is a relatively high proportion compared with the share that households with a computer (50 per cent) or Internet access (47 per cent) in developing countries represented in the world’s total. It signifies that TV reaches more people than most other ICT services in the developing world, and thus remains a highly relevant technology for digital inclusion. However, there is room for further growth: around 349 million households in developing countries did not have a TV by end 2012, which means that the total number of people that cannot watch TV at home is still fairly significant Chart 5.1: Households with a TV, world and by level of development, 2008-2012 in the developing world. This is particularly true in Africa, where fewer than a third of households had a TV by end 2012. In contrast, the percentage of households with a 100 As % of total households 95 TV in all other regions was above 75 per cent (Chart 5.2). 98 98 98 98 85 Developed World Developing 80 79 90 77 78 78 98 region can be explained, among other factors, by the limited access to electricity: fewer than 25 per cent of households 79 70 69 70 70 71 2008 2009 2010 2011 72 2012 60 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. 162 in Sub-Saharan Africa have access to electricity (AFREA, 2012). However, as regional and national initiatives improve 75 65 The low percentage of households with a TV in the African household access to electricity in Africa,19 household access to TV is expected to grow accordingly in the region. Indeed, Africa experienced the highest growth rate of all regions between 2008 and 2012, with an 18 per cent increase in households with a TV. In absolute terms, the Asia and the Pacific region was home to around half of the world’s households with a TV by end 2012, having gained nearly 67 Measuring the Information Society 2013 Chart 5.2: Households with a TV, by region, 2008-2012 100 90 As % of total households 80 70 Africa 60 Asia & Pacific 50 Arab States CIS 40 The Americas 30 Europe 20 10 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. million households with a TV since 2008. This corresponds to an 11 per cent increase in households with a TV in the four-year period, as against a 4 per cent rise in the total number of households in the region in the same period. The regions with the highest household TV penetration were the Americas, the Arab states, CIS and Europe, all of them with more than 90 per cent of households with a TV. The top seven countries accounted for 56 per cent of the world’s households with a TV by end 2012 (Chart 5.3). The countries with most households with a TV also are those with the largest numbers of households, which confirms Chart 5.3: Top seven countries by number of households with a TV, 2012 that TV is a widespread technology and hence absolute figures depend primarily on the number of households in the country. Share in global households with a TV Indonesia 3% Rest of the world 44% Japan 3% Russia 4% Brazil 4% United States 9% 5.2 The growth of digital TV Digital transmission is rapidly replacing analogue as the de facto technology on account of its robustness and efficient India 8% use of spectrum, which allow better quality and more China 25% channel choice. Several countries have set deadlines for ending analogue terrestrial transmissions. These deadlines have been established on the basis of national digital Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. switchover targets and/or international agreements, such as for instance the EU’s Radio Spectrum Policy Programme (European Parliament, Council, 2012). 163 Chapter 5. Digital TV broadcasting trends In parallel, operators are deploying digital terrestrial television (DTT)20 networks to meet the targets set. However, digital TV is not confined to terrestrial broadcasting transmissions, and cable and satellite networks are also being upgraded to digital technology. services in the assigned bands occurs at a later stage, when the digital switchover is completed and operators have deployed their networks.24 Telecommunication companies have also realized the benefits of digital TV transmissions, and seen them as Several governments have decided not to allocate the entire spectrum formerly used for analogue terrestrial TV broadcasting to digital television. The surplus capacity – known as the “digital dividend”21 – has in several countries been allocated for non-TV purposes, usually wireless broadband. This is the case, for instance, in a number of European countries that have followed the recommendation on the digital dividend contained in the Radio Spectrum Policy Programme (European Parliament, Council, 2012) to use the 800 MHz band – i.e. the digital dividend in Europe – for high-speed electronic communication services, such as wireless-broadband technologies, in particular to cover sparsely populated areas. A number of countries have already assigned part of the digital dividend to telecommunication operators for the deployment of advanced mobile-broadband networks (Table 5.1), such as LTE. It should be noted that assignment is a preliminary step, and that the effective launch of the an opportunity to enter the pay-TV market. IPTV uses broadband connections to carry TV signals. IPTV is different from over-the-top (OTT) TV and video in that it provides a guaranteed quality of service (QoS), comparable to that of regular TV transmissions, whereas OTT TV is delivered without such QoS assurances. By means of IPTV, telecommunication operators can offer their subscribers bundles of TV, fixed broadband, fixed telephony and, in a growing number of cases, mobile services (voice, data and SMS). Conversely, digital technology also means that cable operators can provide similar bundles. Both cable operators and telecommunication operators are expanding their fibre-optic networks, bringing them closer to the customers’ premises, and thus greatly enhancing their offers (for instance, by providing a much faster broadband connection). This convergence of networks is one of the main driving forces of competition in current broadcasting markets. Mobile TV in most countries is delivered via mobile- Table 5.1: Countries that have assigned part of the digital dividend to mobile-broadband networks broadband connections through IP technology. In addition, several countries have allocated spectrum specifically for mobile TV, which is then delivered through technologies such as DVB-H.25 Country Date of assignment United States22 March 2008 Germany May 2010 Sweden March 2011 Spain July 2011 Italy September 2011 France December 2011 Portugal December 2011 is also taking place in the developing world, where the Switzerland February 2012 number of households receiving digital TV almost tripled Denmark June 2012 from 138 to 380 million in the four-year period. In developed Japan June 2012 countries, meanwhile, as many as 81 per cent of total Romania September 2012 households with a TV received the TV signal through Croatia October 2012 digital technologies by end 2012. In absolute terms, this Ireland December 2012 means there are 385 million households receiving digital Source: GSMA23 and regulators’ press releases. The world witnessed a massive shift from analogue to digital TV reception in the four years to end 2012. In 2012, a total of 55 per cent of households with a TV received digital TV signals, compared with 30 per cent in 2008 (Chart 5.4). The halfway mark was passed in 2012. The digital switchover TV in the developed world. This is explained by the fact that the digital switchover was planned (through national 164 Measuring the Information Society 2013 Chart 5.4: Households with digital TV, world and by level of development, 2008-2012 As % of households with a TV 90 Developed 80 World switchover, in 2006 governments from 120 countries in 81 75 61 50 55 53 49 40 43 30 20 36 30 including deadlines for the analogue terrestrial television switchover, in the ITU’s GE06 Agreement31 (Box 5.3). 42 35 However, complete digital transition has been harder to 29 achieve because governments’ switchover plans do not 22 10 Europe, the Middle East and Africa agreed to several measures associated with the introduction of digital broadcasting, 68 60 equipment was ready for the digital switchover.30 As regards major international initiatives on the digital Developing 70 a given date with a digital TV tuner, so that new consumer 17 usually include analogue cable. Cable networks are generally 0 2008 2009 2010 2011 2012 owned by private companies, so governments do not always have the legal basis to enforce switchover plans on them. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. One exception is Finland, where the deadline for ending digital analogue cable transmissions was set at February 2008, six months after the FTA analogue switch-off (Ministry of Transport and Communications Finland, 2008). laws) and deployed earlier in the developed countries than in the developing countries, which are still in the process of switching over. To some extent, this has benefited the developing world, as equipment prices have fallen since the first countries rolled out their digital networks, thanks to economies of scale. National governments and international initiatives (see Box 5.3) have helped this transition to digital TV reception. Governments have set deadlines for the transition from analogue terrestrial broadcasting to digital terrestrial broadcasting. In larger countries, this often involves switching off the analogue terrestrial signals on a region- Further momentum was provided by many pay-TV operators, which have encouraged their subscribers to convert to their digital offerings not only so that they can increase revenues per subscription but also because they want to retain their subscriptions in the face of additional competition from rival pay-TV operators. Bundling (whereby operators can provide TV and other telecommunication services combined in one subscription with one bill) has also opened up the market, as incumbent telecommunication operators encroach on cable operators’ traditional turf and vice versa. In countries where local loop unbundling is mandated, alternative operators can also offer by-region basis, which is what has happened in the larger bundled services based on the incumbent’s network, thus Western European countries as well as in Brazil.26 increasing competition. Bundling provides operators with Governments have spent considerable sums on educating the public in respect of the forthcoming switchover, including the benefits of digital broadcasting and the practicalities involved.27 Several governments (including the United States28) have subsidized the cost of a DTT set-top box – or even given boxes away free – for lower-income higher overall (blended) average revenue per subscription (ARPU) than standalone TV subscriptions, but lower ARPU for TV services. Additionally, double-play and triple-play subscribers (i.e. those contracting subscriptions to two and three bundled services, respectively) are more loyal than standalone ones, thus reducing churn (disconnections) and the related subscription-retention costs. homes. Other government initiatives (for example, in Uganda29) have included reducing sales taxes or luxury taxes A regional analysis shows that the proportion of households on set-top boxes. In some countries, national legislation receiving digital TV signals out of the total households requires product manufacturers to fit all TV sets sold after with a TV varies substantially across regions (Chart 5.5). In 165 Chapter 5. Digital TV broadcasting trends Box 5.3: The ITU GE06 Agreement In June 2006, at the conclusion of ITU’s Regional Radio- Radio and television broadcasting in Europe, Central Asia, the communication Conference (RRC-06) held in Geneva, Switzerland, Middle East and Africa, like in other regions, is undergoing a a total of 107 countries from Europe, Africa, Central Asia and the substantive transformation with the changeover from analogue Middle East as well as the Islamic Republic of Iran adopted the to digital. For example, digital technologies allow the transmission GE06 Agreement with a view to advancing in the development of of up to 20 television programmes in the same radio-frequency ‘all-digital’terrestrial broadcasting services for radio and television. channel, whereas analogue transmissions could only fit in one The GE06 Frequency Plan ensures that as many as 70 500 digital programme. Moreover, digital broadcasting opens the door to 32 broadcasting services offered in 120 countries (henceforth new innovations, such as TV broadcast to mobile devices and referred to as planning area) can operate in a compatible manner. handsets (through the DVB-H standard) and high-definition A key factor for the success of the conference was the outstanding television (HDTV), while providing greater bandwidth for existing cooperation between ITU, the European Broadcasting Union (EBU) mobile, fixed and radionavigation services. and the European Organization for Nuclear Research (CERN), which The GE06 Agreement was conceived as a regulatory framework made its computer grid system available for the time-consuming that is responsive, flexible and durable in the face of changing task of compatibility calculations.33 technological developments, future demand for spectrum ITU Member States in the Americas and the Asia and the Pacific for other uses (e.g. mobile and radionavigation services) and regions were not concerned by the conference, because of the changing communication policies in Member States in the geographical separation from the GE06 countries. There are no planning area. major international agreements of this kind on digital radio and The precedents for GE06 were the frequency planning frameworks 34 television in the Americas and the Asia and the Pacific regions, although some countries have adopted bilateral or multilateral agreements (with a small number of countries) on the subject. that had been established for analogue television – 45 years ago for Europe (Stockholm Frequency Plan, 1961) and 16 years ago for Africa (Geneva Frequency Plan, 1989). These frequency plans The GE06 Agreement sets 2015 as the deadline for completion of were no longer suitable for the digital age, and a new frequency the transition period35 from analogue to digital TV broadcasting, and framework was required in order to take full advantage of digital 2020 in respect of analogue television services in the VHF band (174- broadcasting. The GE06 Agreement marks the beginning of the 230 MHz) for a number of developing countries in the planning area. end of analogue broadcasting. Figure Box 5.3: GE06 countries Source: ITU. 166 Measuring the Information Society 2013 Chart 5.5: Households with digital TV, by region, 2008-2012 100 90 As % of households with a TV 80 70 Africa 60 CIS 50 Asia & Pacific The Americas 40 Arab States 30 Europe 20 10 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. the Americas, the Arab States and Europe, more than half Households receiving digital TV as a percentage of total the households receiving TV signals did so through digital households with a TV reached almost 100 per cent in technologies by end 2012. In the Arab States, this is due to some countries, such as Estonia, Finland, Italy, Spain and the prevalence of satellite technologies (which are digital) 36 the United Kingdom. In all these countries, the analogue as the main means of receiving TV signals. In the Americas, switch-off had already taken place by end 2012 (DigiTAG, the growth in digital TV penetration is mainly explained by 2013). Several other countries are in the process of digital the conversion of CATV networks to digital technologies. switchover and have already achieved a significant level Europe has reached first position in terms of percentage of households with a TV that receive the signal through digital technologies on account of the advances made in the DTT switchover (see section 5.3 for more details on the breakdown by platform). On the other hand, Africa, CIS and Asia and the Pacific are still short of the halfway mark in the TV digital switchover process. Nonetheless, all three regions have more than doubled the number of households receiving digital TV between 2008 and 2012. In the CIS region, growth is attributable to the conversion of households receiving analogue TV to digital technologies. In Africa, data suggest that many new households with a TV have directly adopted digital technologies. In Asia and the Pacific, it is both conversion of digital TV coverage. However, coverage of digital TV signals does not equate to actual uptake, as other barriers to adoption may persist, such as for example the high cost or lack of set-top boxes, limited supply of electricity, lack of relevant content in local languages or high cost of TV sets. In Rwanda, the Ministry of Youth and ICT has launched the “Tunga TV” programme to reduce price barriers to DTT adoption by making digital TV sets and set-top boxes more affordable.37 Some developed countries have not achieved full digital conversion owing to the legacy of analogue cable subscriptions. These remaining analogue cable subscribers are reluctant to convert to digital and to pay more for their TV reception, even if they get more channels in exchange. to digital TV and new households directly adopting digital Asia and the Pacific hosts several of the world’s most technologies that are driving digital TV uptake. populous countries (with 12 of the region’s countries 167 Chapter 5. Digital TV broadcasting trends Chart 5.6: Top seven countries by number of households with digital TV, 2008 and 2012 Share in global households with digital TV 2008 2012 Brazil India 4% 1% Rest of the world 44% Germany 5% Rest of the world 42% Brazil 4% United Kingdom 6% Japan 7% United Kingdom 3% China 11% United States 22% Germany 4% Japan 5% India 7% United States 15% China 20% Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. boasting populations in excess of 50 million), so it is not surprising that the number of households receiving digital TV has increased so rapidly there (Chart 5.6). By virtue of the sheer size of the country, the number of households with digital TV in China rocketed between 2008 and 2012, with India also mirroring this growth. However, only 46 per cent of households with a TV in China received digital signals by end 2012, and 44 per cent in India – indicating that there is still plenty of room for growth. in practice delays the go-live date. Fixed networks (cable and IPTV) took time to catch up owing to the effort needed to build out their infrastructures. Terrestrial TV broadcasting networks require time to enter into operation, on account of both the construction work and the necessary spectrum arrangements involved. Moreover, once terrestrial TV broadcasting, CATV and IPTV networks are completed, they still cannot reach every household, owing to the geographic limitations of terrestrial signals. Hence, they often need to be complemented by satellite networks in order to ensure universal coverage.38 5.3 TV reception by platform Cable and telecommunication operators’ networks nevertheless have a distinct advantage over current satellite networks: once they are deployed, incremental costs per unit of capacity are lower, which is particularly relevant for bandwidth-hungry applications. This allows telecommunication operators to provide TV, broadband and telephony bundles (triple-play) at competitive prices. The United Kingdom and Ireland’s BSkyB39 is one of the few satellite-TV platforms to offer triple-play bundles. The massive shift from analogue to digital TV reception in recent years has been achieved through the rapid introduction of new technologies – and the subsequent fall in equipment prices as take-up has reached mass-market levels. Satellite TV (DTH) was the initial driver for digital television since it is easier to roll out, securing pan-regional coverage the moment a satellite is deployed. However, a national authorization is required before a satellite-TV platform can officially launch commercial services in each country, which 168 Digital TV technologies have been driving the growth in households with a TV between 2008 and 2012 (Chart 5.7). Digital cable subscriptions more than doubled in the four- Measuring the Information Society 2013 The technology recording the highest relative growth was IPTV, with total subscriptions increasing more than fourfold. However, in absolute terms IPTV still represented only a marginal share of total households with a TV. It should be noted that data referring to terrestrial TV broadcasting (both analogue and DTT) presented in this chapter include households with a TV that receive only terrestrial TV broadcasts. If a household subscribes to cable, IPTV or satellite services in addition to receiving terrestrial TV broadcasting, it is counted under cable, IPTV or satellite and Chart 5.8: Households with a TV by four main technologies, 2008-2012 100 90 80 70 60 50 40 30 20 10 0 As % of households with a TV year period, as did the number of households receiving DTT. not under terrestrial TV broadcasting, thus avoiding double counting.The analysis of the four main TV-distribution 1 15 22 33 34 51 39 2008 IPTV 5 2009 DTH satellite 2010 Cable 2011 2012 Terrestrial broadcasting technologies (grouped regardless of the analogue/digital differentiation) shows that terrestrial broadcasting remained the most popular TV-distribution platform, although the number of households receiving terrestrial TV broadcasts declined significantly between 2008 and 2012 (Chart 5.8). Cable slightly increased its share in total households with a TV, while DTH satellite subscriptions experienced the highest Note: DTH satellite refers to the sum of FTA and pay DTH satellite; cable includes analogue and digital CATV; terrestrial broadcasting refers to the sum of analogue and digital terrestrial TV broadcasting. Mobile TV is not included owing to lack of data. It would anyhow represent only a marginal share of the total. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. increase in the four-year period. The following sections present a more detailed analysis of the main TV technology platforms: terrestrial TV broadcasting (analogue and digital), cable TV (analogue and digital), DTH satellite (free and paid), IPTV and mobile TV. For each technology, the key trends in the period 2008- Chart 5.7: Households with a TV by type of technology, 2008-2012 IPTV 100 FTA DTH satellite 90 As % of total households 80 2012 are described. Terrestrial TV broadcasting Terrestrial TV broadcasting maintains a significant position in the TV universe. About 546 million households still watched Pay DTH satellite Analogue cable Digital cable TV only through terrestrial TV broadcasts on their main sets 30 DTT higher if households watching terrestrial TV broadcasting in 20 Analogue terrestrial broadcasting addition to subscribing to pay-TV platforms were counted. 70 60 50 40 10 0 2008 2009 2010 2011 2012 by end 2012, although this figure was down from 657 million at end 2008. From the 2012 total, 409 million (75 per cent) were in the developing countries. The figure would be even China (139 million) was the top country measured by households receiving only terrestrial TV broadcasts by end Note: Mobile TV is not included owing to lack of data. It would anyhow represent only a marginal share of the total. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. 2012, followed by Brazil (41 million), Indonesia (35 million) and the Russian Federation (24 million). Analogue terrestrial broadcasting has been the de facto TV delivery platform in many countries for many years: a cheap and well-established 169 Chapter 5. Digital TV broadcasting trends Chart 5.9: Households with only terrestrial TV broadcasting, by region, 2008-2012 As % of households with a TV 90 80 70 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 Asia & Pacific Africa CIS Arab States Europe The Americas Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. technology that allows upgrading to digital as a progressive and relatively easy process. By end 2012, 74 per cent of households with a TV in Africa received the signal only through terrestrial broadcasting, and over 50 per cent in CIS countries (Chart 5.9). In other regions, between 30 and 40 per cent of households with a TV relied on terrestrial broadcasting. This testifies to the fact that terrestrial broadcasting remains important in all regions. Even in the Arab States, where the percentage of households with a TV watching only terrestrial TV broadcasts was the second lowest, terrestrial broadcasting still accounted for nearly one-third of the total, being the main alternative to satellite TV, which accounted for the rest. Despite the overall high penetration of terrestrial TV broadcasting, it should be noted that it experienced a significant decrease between 2008 and 2012. This is mainly due to growing competition from other TV platforms, which has only partially been counterbalanced by the growth in DTT. The following sections present separately the trends in analogue terrestrial broadcasting and DTT in the period 2008-2012. Analogue terrestrial TV Analogue terrestrial TV has traditionally been the main means of broadcasting TV signals in most countries. Despite the 170 far-reaching and rapid conversion to digital, there were still 404 million households with a TV receiving only analogue terrestrial TV broadcasts by end 2012. However, this figure is well down on the 600 million recorded at end 2008. The proportion of households with a TV receiving only analogue terrestrial TV broadcasts fell from 36 per cent in 2008 to 23 per cent by end 2012. The switchover to DTT or other TV platforms occurred in all regions, but particularly in Europe, where only about 5 per cent of households with a TV watched only analogue TV programmes (Chart 5.10). In Africa, the share of analogue terrestrial broadcasting in total households with a TV was still 65 per cent at end 2012, although this was down from 84 per cent at end 2008. The Arab States was the region where households receiving only analogue terrestrial TV broadcasts decreased the least, which is partly explained by the fact that the digital switchover is still in its infancy there. The list of countries with most households watching only analogue terrestrial broadcasts includes the ones with the largest populations, such as China (125 million by end 2012), Indonesia (35 million), Brazil (28 million) and the Russian Federation (19 million). This highlights the fact that the digital switchover is one of the main ICT challenges that lie ahead in these countries. The only BRIIC country not included in the list is India, where cable remains the main Chart 5.10: Households with only analogue terrestrial TV broadcasting, by region, 2008-2012 90 80 As % of households with a TV 70 60 50 40 30 Africa Asia & Pacific Arab States 20 10 CIS The Americas Europe 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. Measuring the Information Society 2013 Chart 5.11: Number of countries by % of households with analogue terrestrial TV broadcasting, 2008-2012 140 Analogue terrestrial TV broadcasting has little significance* 120 Number of countries 100 Analogue terrestrial TV broadcasting is significant** 80 60 40 Analogue terrestrial TV broadcasting dominates*** 20 0 2008 2009 2010 2011 2012 Note: * Countries where <10% of households with a TV have only analogue terrestrial TV. ** Countries where 11-50% of households with a TV have only analogue terrestrial TV. *** Countries where >50% of households with a TV have only analogue terrestrial TV. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. TV platform. Chart 5.11 shows the evolution in the relevance one, even though this may also imply that further efforts of analogue terrestrial broadcasting by number of countries are necessary to extend terrestrial broadcasting network between 2008 and 2012. coverage. Digital terrestrial TV For many households, DTT is a low-cost investment, as the Digital terrestrial television (DT T ) has experienced substantial growth over the last five years, as governments aim to meet the targets set nationally and internationally for the digital switchover. Digital terrestrial television boxes are relatively cheap and most of the channels on offer are free-to-air. Depending on the technology involved, most boxes retail at USD 15 to 60. Many governments have subsidized or given away set-top boxes for lower-income homes. In addition, most new sets are built with integrated is usually free-to-air, although some countries (such DTT receivers, and in several developed countries this as Denmark, France, Italy or Spain) also offer pay-DTT has become a legal requirement for authorized product packages. In Africa, several countries have introduced pay manufacturers (DigiTAG, 2013). As a result, digital TV tuners DTT as a cheaper alternative to satellite TV, and also as a are becoming more commonplace on all TV sets within a means of overcoming the problem of the limited cable or household – not just the main set. broadband infrastructure in Africa. Estimates presented in this section refer to primary DTT Digital switchover is most complex – and most expensive (i.e. homes not subscribing to cable, DTH satellite or IPTV, – in countries where the analogue network is most but taking DTT) on the main set, in order to avoid double developed. Therefore, some African countries, for instance, counting with other TV-delivery platforms. have found digital switchover to be a relatively easy task, since it is a simple matter of replacing a single analogue There were 142 million households receiving only DTT on transmitter with a more powerful and efficient digital their primary TV set (10 per cent of households with a TV) 171 Chapter 5. Digital TV broadcasting trends Chart 5.12: Households with only DTT, by region, 2008-2012 As % of households with a TV 30 25 Europe Africa Asia & Pacific Cable TV Cable TV remains strongest in developed countries where it was first included as part of the household rent, such as The Americas CIS Arab States Belgium and the Netherlands. The low monthly cable bill was often added to the monthly rent by the local council or landlord. Cable TV originally comprised retransmission 20 of public-service broadcasters to avoid signal interference. 15 The situation has often been different in developing 10 countries. In India, local entrepreneurs hooked up their 5 neighbours to rudimentary analogue cable systems. Most of these analogue cable networks started before Indian 0 2008 2009 2010 2011 2012 DTH satellite operations, which offer many more channels.40 Today, there are a large number of cable operators in India41 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. that redistribute popular local content at affordable prices, in some cases complementing subscription revenues with advertising revenues. Most Indian cable subscribers still rely on basic analogue cable networks. globally by end 2012, up by 24 million from a year earlier and by 86 million from 2008. Europe is by far the region where the digital switchover is most advanced, with as many as 12 countries already having switched off analogue terrestrial broadcasting (DigiTAG, 2013). Indeed, the region has long constituted the global DTT stronghold, being home to 42 per cent of global primary DTT With the improvement of cable technologies, CATV networks have been upgraded to deliver broadband Internet and fixed telephony together with TV services, thus entering into direct competition with telecommunication operators. In some countries, such as the United States, cable networks are the main infrastructure-based competition to the telecommunication incumbent. households by end 2012. The Americas region achieved the Global cable subscriptions amounted to 467 million (34 per first DTT switchover milestone in 2009, with the analogue cent of households with a TV) by end 2012, up from 420 switch-off in the United States. Other large countries in the million (33 per cent of households with a TV) at end 2008. region, such as Brazil, are also in the process of gradually The proportion has fallen in most developed countries switching over. The Africa and CIS regions started to make owing to additional competition, but it has climbed in the some progress in the transition to DTT in 2012, while the developing nations, such that there is now little difference progress in Asia and the Pacific is ongoing but much slower, between the two. because of the sheer size of the region (Chart 5.12). In the Arab States, DTT was only operational in Mauritania, Morocco, In relative terms to total households with a TV, cable Saudi Arabia and Tunisia in 2012 (ITU, 2012c). penetration is highest in Asia and the Pacific and the Americas, whereas it is negligible in Africa and the Arab Italy had 17 million primary DTT households at end 2012, States (Chart 5.13). In absolute terms, the Asia and Pacific followed by the United States (16 million) and China (14 region is home to most cable-TV subscriptions, China (175 million). However, the proportion of primary DTT homes million) and India (62 million) being the countries with to households with a TV was highest in Spain (76 per cent), most cable subscriptions in 2012. In relative terms, 45 per followed by Italy (73 per cent) and Australia (62 per cent). cent of all households received cable TV in China and 27 These are countries where pay-TV services from cable, per cent in India by end 2012. Cable-TV penetration was satellite or IPTV have had less of an impact. higher in several developed countries, such as Belgium (68 172 Measuring the Information Society 2013 Chart 5.13: Households with CATV, by region, 2008-2012 gave their competitors (especially DTH satellite players) firstmover advantage. Nevertheless, most cable networks now offer digital services, although many still provide analogue packages as well. 45 As % of households with a TV 40 35 Recording less dramatic growth than IPTV but higher 30 subscription numbers, digital cable reached 251 million 25 subscriptions (18 per cent of households with a TV) by end 20 2012, up from 114 million in 2008 (9 per cent of households 15 Asia & Pacific Europe Arab States 10 5 The Americas CIS Africa with a TV). The number of subscriptions to digital cable TV in the developing countries overtook the developed countries’ 0 2008 2009 2010 2011 2012 total in 2010. By end 2012, developing countries accounted for 58 per cent of the world total. Countries in the Asia and Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. the Pacific region supplied 57 per cent of global digital cable-TV subscriptions by 2012. The most dynamic regions in terms of digital cable uptake per cent), Canada (59 per cent), Luxembourg (68 per cent), Netherlands (65 per cent) and Switzerland (65 per cent). were Asia and the Pacific and Europe, which doubled the percentage of households with a TV subscribing to digital cable between 2008 and 2012 (Chart 5.14). The Americas Digital cable TV region also experienced strong growth in households Despite the limited capabilities of analogue networks, region with the highest share of digital cable subscriptions cable operators (many of which were owned by public in total households with a TV. The CIS region also saw some organizations in Europe) were reluctant to make the massive growth in the significance of digital cable TV, whereas in outlay required to upgrade their networks to digital. This Africa and the Arab States digital cable remained negligible. receiving digital cable TV, and retained first position as the Chart 5.14: Households with digital CATV (left) and analogue CATV (right), by region, 2008-2012 The Americas Europe Arab States 25 Asia & Pacific CIS Africa 20 15 10 5 0 35 As % of households with a TV As % of households with a TV 30 30 25 20 15 10 Asia & Pacific The Americas Arab States 5 CIS Europe Africa 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. 173 Chapter 5. Digital TV broadcasting trends China had an estimated 113 million digital cable-TV subscriptions to digital CATV. Data suggest that the regions subscriptions by end 2012, up by 18 million on the previous that advanced the most in the conversion from analogue to year and up by 77 million since 2008. China accounted for cable TV were Asia and the Pacific, Europe and the Americas. 45 per cent of the world’s digital cable-TV subscriptions by Indeed, analogue CATV subscriptions decreased in parallel end 2012. with the increase in digital CATV (Chart 5.14). In relative terms, more than half of households received Nevertheless, there are still more analogue than digital digital cable TV in Denmark (51 per cent), Finland (54 per CATV subscriptions in Asia and the Pacific, which highlights cent), Luxembourg (51 per cent) and Malta (53 per cent). the fact that a substantial part of the cable switchover still These were the leading countries in terms of digital cable-TV needs to be carried out. Indeed, almost three-quarters of the penetration in 2012. remaining analogue cable subscriptions in the world were Analogue cable TV Given cable’s historic image as a low-cost, no-frills service, cable operators have encountered some reluctance on the part of subscribers to upgrade to digital platforms. To accelerate the digitization process, some governments are forcing cable operators to switch off their analogue networks. China and India42 are notable examples of this. In China, cable networks are consolidating on a national level: the regulator, the State Administration of Radio, Film and Television (SARFT), is creating the China Radio and TV in the Asia and Pacific region by end 2012. Cable switchover continues to be a challenge in China and India, where, despite government rulings to convert cable subscriptions to digital, there were still 61 and 54 million homes receiving analogue cable TV in 2012, respectively. Although the absolute numbers are smaller because of the population size, conversion of analogue to digital cable networks is also a pending issue in the CIS countries. Indeed, most analogue CATV subscriptions have been maintained in the period 2008-2012, and digital CATV is still in its infancy. Satellite TV Network.43 This network will cover 200 million subscribers A major advantage of satellite TV over cable and IPTV is its and should be operational from November 2013, with full low initial infrastructure costs relative to the large coverage integration envisaged by 2015. The cable networks will be it achieves as soon as it starts operations. All that DTH upgraded to also offer broadband and telephony, with satellite subscribers need is a dish and a set-top box – with CNY 4 billion backing from the Ministry of Finance over two no expensive construction costs. years. The cable operators will receive government funding to upgrade their broadband networks. However, unlike many cable operators and telecommunication operators, very few DTH satellite operators offer In India, the Ministry of Information and Broadcasting44 set bundles, because of bandwidth constraints inherent to December 2014 as the national conversion date, following satellite networks. BSkyB in the United Kingdom and Ireland October 2012 for the big four cities (Phase I: The “metros”) is a rare exception: the company takes advantage of the and March 2013 for the other 38 cities with populations local loop unbundling regulation to complement its services exceeding 1 million (Phase II: 16 million households in offered through satellite infrastructure with on-the-ground total). However, not all analogue cable subscriptions infrastructure from the incumbent. This is only possible in a will automatically be converted to digital cable, the six small number of countries, since local loop unbundling is DTH satellite operators claiming that many analogue not available in the majority of countries. Most DTH satellite cable subscriptions have switched to their services. operators focus on supplying value-added TV services, such as high-definition channels or digital video recorders. The global number of digital cable subscriptions overtook the analogue cable total in 2012. In fact, the number of When satellite-TV platforms were first launched, many analogue cable subscriptions fell by 89 million between observers believed that take-up would be restricted to 2008 and 2012, owing to the conversion of many of these rural areas outside the footprint of the fixed terrestrial 174 Measuring the Information Society 2013 networks. However, by virtue of the fact that it often provides hundreds of channels, satellite TV appealed to city dwellers too, especially because cable networks were Chart 5.15: Households with DTH satellite TV, by region, 2008-2012 slow to convert to digital. Free-to-air satellite television 70 has been utilized by several governments to ensure that every home (including those in remote areas not covered by the digital terrestrial TV network) can receive digital television signals. By end 2012, 301 million homes watched TV via a satellite dish, up from 198 million at end 2008. The developingcountry total climbed to 164 million by end 2012, 84 million up on the total at end 2008. As % of households with a TV (such as Freesat in the United Kingdom and Tivusat in Italy) 60 Arab States Africa CIS 50 40 30 20 10 0 2008 The Arab States is by far the region where DTH satellite plays the most important role as a TV-distribution platform Europe The Americas Asia & Pacific 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. (Chart 5.15). This is explained by the relatively low coverage of alternative multichannel platforms (DTT, CATV and IPTV), and the large number of channels offered through free-toair satellite transmissions (ITU, 2012c). As a result, 66 per cent Unlike cable and terrestrial TV broadcasting, DTH satellite of households with a TV receive it through DTH satellite, is already almost 100 per cent digital. Whereas CATV is a compared with 31 per cent in Europe and around 25 per paid service, terrestrial TV broadcasting is mostly free (see cent in Africa, the Americas and CIS. Asia and the Pacific is section 5.6 for more details on pay DTT). In the case of DTH the region where DTH satellite TV is least relevant. However, satellite TV, two modalities coexist: paid channels and FTA the technology is still important in some countries such as channels. Below we take a closer look at the evolution of India, the satellite-TV world leader at end 2012 in terms of paid and FTA DTH satellite services. absolute numbers, with 42 million homes receiving satelliteTV signals (or 36 per cent of all households with a TV). The Pay satellite TV United States followed with 37 million, corresponding to 30 per cent of all households with a TV. However, penetration Satellite TV has driven pay-TV penetration in many countries, was higher in almost all Arab States, where more than 500 especially those with few digital cable or IPTV networks, or free-to-air channels are readily available. For instance, in even those where DTT is yet to make much of an impact. 45 Algeria, Bahrain, Jordan, Kuwait, Morocco, Saudi Arabia and Tunisia more than 80 per cent of households with TV By end 2012, 179 million homes (13 per cent of households received DTH satellite TV by end 2012. with a TV) paid to receive satellite-TV signals, up from 164 million a year earlier and 108 million at end 2008. The total The overall increasing importance of DTH satellite TV in the developed countries stood at 92 million (19 per cent is noteworthy: in all regions the share DTH satellite TV of households with a TV) by end 2012, up by 14 million from represents in total households with a TV grew between 2008 end 2008. The total in the developing countries increased and 2012. This was particularly the case in Africa and the CIS by 56 million over the same period to reach 87 million in region, where DTH satellite subscriptions almost doubled in 2012 (10 per cent of households with a TV). the four-year period, and the share they represent in total households with a TV rose markedly. This suggests that Although Asia and the Pacific recorded the highest number satellite TV is filling the TV coverage gap in Africa, and taking of pay DTH satellite additions for any region between 2008 the place of other TV platforms in the CIS region. and 2012, the Americas region still boasts the highest 175 Chapter 5. Digital TV broadcasting trends Chart 5.16: Households with pay DTH satellite TV, by region, 2008-2012 As % of households with a TV have any cable or IPTV platforms, and thus DTH satellite operator MultiChoice enjoys a virtual pay-TV monopoly. 25 Free-to-air satellite TV 20 FTA platforms are used by TV content producers to increase the reach and viewership of their free-to-air channels, and 15 consequently raise advertisement revenues. For instance, the Malaysian pay-TV powerhouse Astro also offers free-to-air DTH 10 satellite through the platform Njoi46 for those very reasons. 5 Furthermore, some pay-TV operators offer free-to-air 0 2008 2009 2010 2011 The Americas Africa Asia & Pacific CIS 2012 DTH satellite platforms to ensure that viewers do not go Europe Arab States elsewhere. They also hope that viewers will decide to upgrade to pay services at a later date. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. Some governments use FTA satellite TV to reach households that are outside the terrestrial broadcasting network. This process, known as infilling, is employed for example by Sentech47 in South Africa. absolute numbers of pay DTH satellite subscriptions (with most of the growth coming from Latin America, building By end 2012, 122 million homes received FTA satellite on a substantial base in North America). This is also reflected signals, up from 90 million at end 2008. This represented 9 in the penetration figures, which show that the Americas per cent of global households with a TV by end 2012, up remains the region where pay DTH satellite represents the from 7 per cent at end 2008. The proportion was as high as largest share in total households with a TV (Chart 5.16). 63 per cent in the Arab States by end 2012, whereas it was around 10 per cent or lower in all other regions (Chart 5.17). The number of pay DTH satellite subscriptions tripled in the CIS countries between 2008 and 2012, and almost doubled in Africa during the same period. In both these regions, pay DTH satellite is becoming an increasingly important platform for TV reception, which highlights that a relevant number Chart 5.17: Households with FTA DTH satellite TV, by region, 2008-2012 of viewers are willing to pay for TV services in exchange 70 DTH satellite penetration is relatively low in the Arab States, where FTA DTH satellite dominates. As stated in ITU (2012c), “end users in the region are, for the most part, not used to paying for content due to the plethora of free broadcasting content, and piracy remains a problem.” India (38 million) and the United States (36 million) had the most pay DTH satellite subscriptions by end 2012. The thirdand fourth-placed countries, Russian Federation and Brazil, As % of households with a TV for exclusive content and more channels. In contrast, pay 60 50 Arab States CIS Asia & Pacific 40 30 Europe Africa The Americas 20 10 0 2008 2009 2010 2011 2012 each had about 10 million pay DTH satellite subscriptions by end 2012. However, South Africa (54 per cent) had the highest penetration of pay DTH satellite as a proportion of households with a TV at end 2012. South Africa does not 176 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. Measuring the Information Society 2013 This highlights the importance of FTA satellite channels as a means of information in the Arab States, and their less significant role in other regions. Chart 5.18: Households with IPTV, by region, 2008-2012 12 was maintained in all regions during the period 2008-2012, proving that the increase in pay DTH satellite penetration came from non-satellite viewers switching to pay DTH satellite or from new households with a TV that opted for pay DTH satellite. IPTV IPTV uses broadband networks to carry TV signals, but maintaining a guaranteed quality of service. This requires reliable and high-capacity broadband connections. IPTV is generally aimed at viewing over a television set, making the quality of experience comparable with that of other TV As % of households with a TV The share of households with a TV receiving FTA satellite TV Europe The Americas CIS Asia & Pacific Arab States Africa 10 8 6 4 2 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. platforms. Thus, IPTV is considered as a substitute for cable, satellite or terrestrial broadcasting TV. IPTV should not be confused with over-the-top (OTT) or online TV and video, Furthermore, many operators only provide IPTV services which is delivered via the Internet. as part of a bundle, which requires a substantial economic Many IPTV services have been launched in recent years, usually bundled with other telecommunication services, such as telephony and Internet access.48 However, not all countries allow telecommunication operators to enter the TV market through IPTV. This is changing with convergence, as the regulatory trend is to foster cross-competition between TV and telecommunication operators, including the authorization of IPTV services where they are still prohibited. This is the case, for instance, in Mexico, where the Government has recently approved new legislation for reform of the telecommunication sector, including measures to foster competition in payTV services, which could lead to a lifting of the ban on telecommunication operators’ offering TV services.49 The number of IPTV subscriptions reached 72 million globally by end 2012, up by 17 million from the previous year and more than four times the total recorded in 2008. IPTV penetration (as a percentage of total households with a TV) commitment on the part of the subscriber and is thus beyond the means of a large proportion of the population in the developing world. The percentage of households with a TV that subscribe to IPTV passed the 10 per cent mark in Europe in 2012, while remaining below 5 per cent in all other regions (Chart 5.18). Despite more than doubling in number in all regions between 2008 and 2012, only in Europe did IPTV subscriptions reach a critical mass. This is consistent with the high fixed-broadband penetration in the region, the wide reach of FTTx and DSL networks, and the popularity of bundled ICT services,50 all of which are enabling factors for IPTV reception at home. Most IPTV subscriptions were in the European Union (22 million), China (19 million) and the United States (11 million), altogether accounting for almost three-quarters of the in the developed countries stood at 9 per cent by end 2012, world’s IPTV subscriptions by end 2012. In the European compared with 3 per cent in 2008. In developing countries, Union, the leading country in terms of IPTV subscriptions 3 per cent of households with a TV received IPTV by end is France, with 12 million IPTV subscribers by end 2012. 2012, up from less than 0.3 per cent at end 2008. One reason The three main fixed operators include more than 150 why this proportion is so low is the lack of widespread fixed- TV channels in their basic DSL triple-play packages,51 well broadband infrastructure in many developing countries. beyond the regular DTT offer of 25 TV channels. 177 Chapter 5. Digital TV broadcasting trends In relative terms, Hong Kong (China) was the world leader broadcast mobile TV ) limits available bandwidth for by end 2012 in terms of IPTV subscriptions as a percentage mobile-TV transmissions, which require rather large of households with a TV (48 per cent), ahead of France (47 capacity. Moreover, broadcast mobile TV uses spectrum per cent), Singapore (35 per cent), Slovenia (32 per cent) continuously for broadcasting purposes, independently of and the United Arab Emirates (30 per cent). The United the number of mobile-TV viewers. In the current context Arab Emirates is an exception among the Arab States, as of scarce spectrum, this is only justified if there is strong most homes in the region receive free-to-air satellite TV demand and a solid business case. signals. Etisalat and Du, the two main telecommunication operators in the country, started offering IPTV services However, there have been some notable exceptions and before 2008. Moreover, they are rolling out FTTH networks, successes with broadcast mobile TV, including in Japan, which will improve bandwidth and hence their capacity the Republic of Korea and to a lesser extent Italy. The to transmit TV channels (ITU, 2012c). Republic of Korea started its mobile-TV services in 2002 via CDMA, later upgrading to DMB technologies. NTT IPTV penetration is negligible in Africa owing to low infrastructure build-out and the low number of fixedbroadband subscriptions. The CIS region also displays low penetration at present, but this is set to change soon as DoCoMo launched the first mobile-TV service in Japan in 2005, using the ISDB standards. Italy followed with a DVB-H service from 3 Italia in June 2006. many next-generation networks are under construction, Dyle is the primary example of broadcast mobile TV in the especially in the Russian Federation (see section 5.4 for United States. It is operated by a joint-venture of 12 major more details on network developments in CIS). broadcast groups, including Fox and NBC.52 Dyle began Mobile TV operations via broadcast networks in August 2012. It was There are two main forms of mobile TV: (i) mobile TV broadcast over terrestrial networks or via satellite; (ii) mobile TV transmitted over a 3G/4G mobile-broadband network. The standards for the broadcast side of mobile TV reflect the digital terrestrial standards such as DVB-H (adopted by the European Union), CMMB (China), ISDB (Japan and South America), DMB (Republic of Korea) and ATSC-M/H (North America). Both forms of mobile TV have so far seen limited success. The lack of devices capable of receiving broadcast mobile TV (and the lack of handset subsidies) has stifled its take-up. Mobile consumers have proven reluctant to pay more to receive TV services on their mobile phones. Furthermore, lack of content adapted to the size of mobile screens and to viewing patterns while on the move (shorter viewing periods than regular TV) has also proved to be an issue for further adoption. The screen size may become less of a available in 35 cities by end 2012, offering about five free live standard-definition channels in each city. The company wants to be present in 39 cities by end 2013. Apple mobile users access Dyle through an accessory called Elgato. The Samsung Galaxy S Lightray 4G is the only Android phone to run the service at the moment. MultiChoice is pushing broadcast mobile TV in Africa through its DStv Mobile operation.53 The hybrid DVB-H and 3G service started up in South Africa in December 2010, and has now spread to Ghana, Kenya, Namibia, Nigeria, and Tanzania. Mobile T V transmitted through mobile-broadband networks has registered slightly more success compared with broadcast mobile TV, taking advantage of the roll-out of 3G data networks throughout the world. In this case, TV is streamed to the user’s handset in a similar manner as IPTV at home, using the mobile data connection. Examples of barrier in the future as tablets and large-size smartphones mobile TV transmitted using the 3G/4G network include become more common. Movistar’s “Imagenio en el móvil” 54 or Etisalat’s Mobile TV.55 This kind of mobile-TV offer may further develop in the In addition to demand-side difficulties, there are technical future as the deployment of advanced mobile-broadband constraints on the supply side: a shortage of spectrum technologies, such as LTE-Advanced and WirelessMAN- (or even a lack of allocated spectrum, in the case of Advanced, increases. 178 Measuring the Information Society 2013 5.4 TV reception by region public broadcaster. Cable and broadband networks are While each country is different, with unique features when it comes to TV reception, there are some broad regional trends. This is due to both regional technical constraints (e.g. satellite footprints are often regional) and common policy decisions (e.g. the ITU GE06 Agreement sets 2015 as the deadline for the completion of the transition period from analogue to digital TV broadcasting in Africa, CIS and Europe, whereas in other regions no such international agreement exists). The following sections present the most salient trends for each region. CATV uptake is marginal. underdeveloped in the African region, and thus IPTV and Data for the period 2008-2012 confirm that analogue terrestrial TV broadcasting is the dominant TV platform (20 per cent household penetration), although DTT has been significant in the region since 2010 and reached 3 per cent household penetration by end 2012. FTA satellite complements the free TV offer in the region, providing service to some 2 per cent of households (Chart 5.19). Nearly all pay TV in the region corresponds to pay DTH Africa satellite, with cable TV and IPTV negligible in Africa at The number of households with a TV is growing in many African countries as consumers’ disposable incomes rise. However, household TV penetration is still low: less than a third of African households had a TV by end 2012. Pay satellite TV service providers such as MultiChoice/DStv and CanalSat have been available for many years, but the monthly subscriptions are beyond the pockets of most Africans. Households with a TV that are unable to afford satelliteT V platforms have traditionally relied on analogue terrestrial transmissions, which were often restricted to the present. Almost all of the pay-TV subscribers are signed up to one of the pan-regional pay satellite TV platforms, with MultiChoice/DStv and CanalSat being dominant. Digital terrestrial television (DTT) is beginning to make an impact, with governments issuing licences to domestic commercial players. Many countries are in the process of converting their terrestrial broadcasting networks to digital. In several cases, this process is relatively simple, as the analogue network is rudimentary (often confined to some analogue transmitters in the main cities). Just replacing these transmitters with a more powerful and more efficient digital transmitter instantly increases reach and improves picture and sound quality for many Chart 5.19: Households with a TV by type of technology, Africa, 2008-2012 households, although these households still need a digital set-top box. The cost of set-top boxes is beyond the disposable incomes of many homes. In Tanzania, for instance, DTT 35 As % of total households 30 Other 25 FTA DTH satellite 20 15 10 2009 2010 2011 capita (GNI p.c.) stood at USD 570 in 2012,56 and hence the price of the set-top box may represent more than 10 Pay DTH satellite per cent of annual GNI p. c. The situation is similar in other 0 2008 for many people, given that gross national income per DTT Analogue terrestrial broadcasting 5 set-top boxes retail at USD 50 to 100. This is unaffordable 2012 African countries, although the range of set-box prices is somewhat narrower (Table 5.2). Nevertheless, the cost of set-top boxes has fallen in recent years. For instance, the retail price of a set-top box halved in Source: Estimates based on Digital TV Research and ITU data. Data cover 34 countries, accounting for 98 per cent of all households in the region. Nigeria during 2012.57 In addition to growing competition and bigger economies of scale in the product manufacturer market, tax exemptions have contributed to making set- 179 Chapter 5. Digital TV broadcasting trends Table 5.2: Prices of DTT set-top boxes (STB) in selected African countries, July 2013 Tanzania Price STB Price STB as a % of annual GNI p.c. Kenya Rwanda With transitory tax exemptions* Without transitory tax exemptions USD 55 - 80 USD 30 - 40 USD 25 - 30 USD 50 - 100 6% - 9% 5% - 7% 4% - 5% 9% - 18% Note: * StarTimes was granted a transitory 100 per cent tax exemption for terrestrial set-top boxes in Tanzania until 31.12.2012. Source: Communications Commission of Kenya (CCK), Rwanda Utilities Regulatory Agency (RURA) and Tanzania Communications Regulatory Authority (TCRA). top boxes more affordable. For example, import duties are waived for set-top boxes in Kenya, Rwanda and Tanzania. Arab States Moreover, in Tanzania, a 100 per cent tax exemption for DTT More than half of the households in the Arab States receive set-top boxes was granted to StarTimes until end 2012. As a their TV signals via free-to-air digital satellite (Chart 5.20), result, retail prices of set-top boxes were relatively affordable as more than 500 channels are available. In fact, many in Tanzania until end 2012. households in the Gulf States own more than one dish, each receiving signals from different satellites. Analogue terrestrial Pay DTT is also growing fast, as governments award licences. TV broadcasting is the second most popular TV platform in Pay DTT is cheaper than satellite TV, so it appeals to the the Arab States, and 28 per cent of households in the region growing middle class. China-based StarTimes is a pay- watched only analogue terrestrial broadcasts in 2012. TV operator that has invested in the African region and offers pay-TV services combining satellite and terrestrial Digital terrestrial TV broadcasting is still in its infancy in the TV broadcasting. The operator is active in several African region: just four countries had operational digital terrestrial countries and reported 2.5 million DTT subscriptions in broadcasts in 2012 (ITU, 2012c), and a mere 2 per cent of Africa by June 2013. Multichoice’s GOtv is a competing households in the Arab States had only DTT by end 2012. This pay-DTT operator, which has established DTT operations in confirms that the digital switchover process is in an early stage partnership with the local government or public broadcaster of implementation, and remains a challenge in the region. 58 in several African countries. 59 The abundance of FTA channels and the high level of content StarTimes and GOtv operate hybrid free-to-air and pay piracy in the Arab States have dampened the impact of pay- systems. The FTA side of the operation usually comprises TV services (ITU, 2012c). Pay DTH satellite operators struggle channels from the public broadcaster as well as (often to convince homes to convert to their packages, their newly-licensed) private local channels. Both companies main advantage being exclusive access to premium sports usually sell their pay-TV services on a prepaid basis via rights. For example, UAE-based OSN controls exclusive rechargeable smart cards, sometimes accepting mobile rights to golf, rugby and cricket in an attempt to attract payment. the expatriate community. Another example is Al Jazeera Sports, which has about 1 million subscriptions in the Gulf Some African pan-national operators have ambitious plans region. The company has grown thanks to its aggressive for infrastructure expansion. For example, Kenya’s Zuku offers exclusive acquisition of major rights (such as the European triple-play cable bundles so far only in Nairobi, but plans to Champions League, various top European domestic leagues expand its cable infrastructure to other major East African and the World Cup). Notwithstanding singular successful cities. The operator also provides a pay DTH satellite platform business cases, only 3 per cent of households in the region for the rest of Kenya and nine other East African countries. subscribed to pay DTH satellite services. 180 60 Measuring the Information Society 2013 Chart 5.20: Households with a TV by type of technology, Arab States, 2008-2012 Chart 5.21: Households with a TV by type of technology, Asia and the Pacific, 2008-2012 100 Other 80 DTT 70 Pay DTH satellite 60 50 Analogue terrestrial broadcasting 40 30 20 FTA DTH satellite 10 As % of total households As % of total households 90 80 IPTV 70 DTT Pay DTH satellite FTA DTH satellite Digital cable 60 50 40 30 Analog cable Analogue terrestrial broadcasting 20 10 0 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 15 countries, accounting for 80 per cent of all households in the region. 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 23 countries, accounting for 99.8 per cent of all households in the region. Cable and telecommunication operators have heavily ended analogue terrestrial TV broadcasts in 2011, while the promoted the advantages of double-play and triple-play analogue switch-off is scheduled to take place in Australia bundles in order to attract new subscriptions in those during 2013.61 Analogue terrestrial switch-off has also been Arab States where broadband penetration is highest. This finalized in the Republic of Korea (December 2012), but DTT is the case, for instance, in the United Arab Emirates, where does not have as much importance in the country as many Etisalat plans to migrate all of its eVision TV customers (TV households subscribe to other platforms. services offered through wired technologies) to its eLife IPTV bundles. There were 510 000 eLife double- and triple-play In 2012, the number of households receiving CATV (analogue subscribers at end 2012, up from 350 000 a year earlier. Du’s plus digital) overtook those receiving only terrestrial TV IPTV service – competing with Etisalat’s offers in the United broadcasting (analogue plus DTT) in the Asia and the Arab Emirates – had 121 807 subscriptions at December Pacific region. China (175 million) and India (62 million) 2012, up from 113 474 at end 2011. contributed a vast number of CATV subscriptions, although Asia and the Pacific household CATV penetration was highest in the Republic Developments in TV markets in the Asia and the Pacific massive task of converting homes away from cheap and region have an impact on the global TV sector, because of the sheer size of countries such as Bangladesh, China, India, Indonesia, Japan and Pakistan. of Korea (54 per cent of total households had CATV). The rudimentary analogue cable networks is under way in the region, with both the Chinese and the Indian governments enshrining this conversion in law.62 Nevertheless, there were still more analogue cable subscriptions than digital cable Analogue terrestrial broadcasting remains the most popular subscriptions by end 2012, although this situation is likely TV platform in Asia and the Pacific, although it has lost a to have changed by end 2013. lot of market share in recent years: households with only analogue terrestrial broadcasting decreased from 37 to In India, rapid conversion to digital cable is in progress, 26 per cent between 2008 and 2012 (Chart 5.21). Except the Ministry of Information and Broadcasting having set in developed countries, such as Australia and Japan, DTT December 2014 as the national deadline for migrating is yet to make much of an impact in the region. Japan analogue cable to digital technologies. In China, cable 181 Chapter 5. Digital TV broadcasting trends integration expected by 2015. 63 Digital cable will not be the only beneficiary of the analogue cable conversion. For instance, DTH satellite operators have successfully attracted analogue cable subscribers to upgrade to their services in countries such as India. IPTV has also attracted customers previously subscribing to analogue cable, particularly in countries with high fixed-broadband penetration, such as the Republic of Korea. Indeed, IPTV is the TV platform that has experienced most growth between Chart 5.22: Households with a TV by type of technology, CIS, 2008-2012 100 IPTV 90 DTT 80 Pay DTH satellite FTA DTH satellite Digital cable Analogue cable Analogue terrestrial broadcasting As % of total households networks are consolidating on a national level, with full 70 60 50 40 30 2008 and 2012, increasing total subscriptions in the region 20 more than tenfold to a level almost on a par with the number 10 0 of DTT households. Both DTT and IPTV are expected to enjoy 2008 2009 2010 2011 2012 strong growth in the future, given that their share in total households is still small (less than 5 per cent). Commonwealth of Independent States Source: Estimates based on Digital TV Research and ITU data. Data cover 10 countries, accounting for 97 per cent of all households in the region. Analogue terrestrial broadcasting remains the most popular TV platform in the CIS region, despite experiencing a basic analogue networks to state-of-the-art networks. decrease in the period 2008-2012, when the proportion of all Initially concentrated in Moscow and St Petersburg, this households with only analogue terrestrial TV broadcasting construction is being extended to provincial towns and fell from 63 to 41 per cent (Chart 5.22). Although this cities. downturn has been offset to some extent by the increase in households with only DTT (from less than 1 per cent in Nearly all of the new network construction in the Russian 2008 to 8 per cent in 2012), other TV platforms, such as pay Federation is led by private companies. Major players include DTH satellite and IPTV, have also benefited from the decline Rostelecom, MTS and ER Telecom. However, these fixed-line in the number of households with only analogue terrestrial operators have to compete against DTH satellite operators, broadcasting. Indeed, pay DTH satellite subscriptions such as Tricolor,64 which has experienced fast take-up owing tripled in the four-year period, climbing to 12 per cent of to its low-cost packages. households in the region in 2012. IPTV grew from virtually zero in 2008 to 4 per cent household penetration in 2012. In Belarus, the biggest cable TV operators are upgrading their networks to digital technologies: Cosmos TV launched Analogue CATV experienced a slight decrease in the period digital operations using the DVB-C standard in 2009, MTIS 2008-2012, which was however more than counterbalanced launched DVB-C in Minsk in 2011, and Garant, which by the increase in digital CATV. Nonetheless, four out of operates in several regions, started DVB-C services in 2012.65 five households with CATV continued to rely on analogue DTT deployment is well advanced in the country, with 96 technology, which highlights that most cable operators per cent of the population covered by the DTT signal in in the region still face the challenge of upgrading their June 2013.66 The analogue terrestrial broadcasting switch- networks to digital CATV. The same can be concluded off is scheduled to start in some areas in 2013 and extend for terrestrial TV broadcasting, with the digital switchover progressively until completion in 2015.67 pending for a majority of households in the CIS region. Europe In response to the digital conversion that lies ahead, the Russian Federation is engaged in major construction of The European television landscape is split between the digital networks, which will transform the TV sector from maturing West and the less-developed East.68 For instance, 182 Measuring the Information Society 2013 nations at end 2012, compared with 66 per cent in the Eastern countries. Deadlines for analogue terrestrial switchoff were earlier in the West (usually before end 2012) than the East (usually mid 2015). However, the percentage of households with a TV is already very high in both parts of the region (98 per cent). Furthermore, pay-TV penetration is not expected to increase by too much. Most of Western Europe achieved analogue terrestrial switch-off by end 2012. This marked a level of maturity for the subregion. The main pay-TV competition in Western Europe will involve attracting the remaining analogue cable subscribers, for instance through price promotions or by Chart 5.23: Households with a TV by type of technology, Europe, 2008-2012 IPTV 100 Pay DTH satellite 90 As % of total households digital TV penetration stood at 92 per cent in the Western 80 FTA DTH satellite Digital cable Analogue cable 70 60 50 40 30 DTT 20 Analogue terrestrial broadcasting 10 0 2008 2009 2010 2011 2012 offering advanced television services (e.g. HD channels, digital video recorders and video-on-demand libraries). Source: Estimates based on Digital TV Research and ITU data. Data cover 38 countries, accounting for 99.98 per cent of all households in the region. The higher number of DTT channels – and their expanding reach – is rocking the TV advertising sector (which has also suffered from the economic recession in developed countries). Audience fragmentation means that the DTH satellite subscriptions (both pay and free-to-air) have traditional channels are losing viewers and therefore cannot grown by attracting consumers who previously received necessarily justify high rates for ad spots. This trend is analogue TV. However, the most successful technology in confirmed by the audience share of the five main channels attracting households switching to digital TV technologies in the largest European markets (France, Germany, Italy, has been IPTV, which was the fastest growing TV platform Poland, Spain and the United Kingdom), which declined in the period 2008-2012. This is consistent with the high significantly in the period 2000-2009 in all markets except uptake of broadband services in Europe, the increasing Germany, where high CATV penetration had already brought roll-out of FTTH/B networks (which allow for more capacity about a fragmented audience in the 1990s (Lange, 2011). that can be used to transmit IPTV),69 and the prevalence Despite the economic recession, the transition from analogue terrestrial broadcasting to DTT is well advanced in Europe. Only of bundling in Europe,70 all of which are enabling factors for IPTV uptake. 6 per cent of households in the region relied on analogue The IPTV champion is France, where there were as many as terrestrial broadcasting by end 2012, as compared with 25 per 12 million IPTV subscriptions by end 2012. The French TV cent of households having only DTT by the same year (Chart market was shaken up by Free,71 which began providing 5.23). The same transition is taking place with cable, albeit at a its Freebox – an IPTV set-top box – free of charge to new slower pace: 9 per cent of households in Europe with analogue subscribers. Today, six telecommunication operators provide CATV in 2012, as against almost 17 per cent with digital CATV. IPTV packages, including the three main fixed-broadband The analogue terrestrial broadcasting switch-off has not only benefited DTT, and as many as 18 million households operators: France Telecom, SFR and Free. The Americas that in 2008 used analogue or digital terrestrial broadcasting have converted to other TV platforms. CATV has also lost There is a big difference between the TV markets in North 5 million subscriptions in the transition from analogue to America (Canada and the United States) and Latin America. digital technology, which testifies to the strong competition North America is a mature TV market, with a high percentage from IPTV and pay DTH satellite operators. of households with a TV (99 per cent) and little room for 183 Chapter 5. Digital TV broadcasting trends increasing digital TV penetration. Digital TV reached 93 per cent of all households with a TV in North America by end 2012, as compared with 35 per cent in Latin America. Uptake of pay-TV services is also very different between the two subregions: 86 per cent of households with a TV subscribed to a pay-TV service in North America, as against 38 per cent in Latin America. Cable TV is the most popular pay-TV platform in both North America (57 per cent of all pay-TV subscriptions by end 2012) and Latin America (55 per cent of pay-TV subscriptions). There has been a lively debate on ‘cord cutting’ (see for instance OECD, 2012b and OECD, 2013), whereby pay-TV subscribers forego their subscriptions to rely on TV and video provision via the Internet. Research on the impact of cord cutting has been contradictory. Digital TV Research estimates that CATV subscriptions decreased by 6 million (or almost 10 per cent) between 2008 and 2012 in the United States. However, pay-TV subscriptions increased by more than 4 million in the country, which suggests that rather than cutting the cord, consumers switched to other TV platforms. It should be noted that it is analogue cable subscriptions that are declining; digital cable subscriptions are enjoying strong growth. Latin America paints a different picture, comprising growing T V markets and booming economies. The economic boom and governments’ encouragement of foreign investment have resulted in substantial upgrades to cable networks, and to investment in fibre and ADSL. This is the case, for instance, in Brazil (Box 5.4). However, much of the market growth has come from the pay satellite TV boom. Three pan-regional players are pushing the market forward. Following the established satellite platform DirecTV/Sky, Claro (owned by América Móvil) and Telefónica have expanded their offer of telecommunication services by introducing lower-priced packages delivered through pay DTH satellite. Box 5.4: The digital TV boom in Brazil The economic boom has driven digital TV forward in Brazil. Many international players have operations in Brazil. The market The sector has been helped by market liberalization. Law has been boosted by foreign investment from companies such as 12.485/2011 removed entry barriers to foreign investment in Vivendi, DirecTV, Portugal Telecom, Telefónica and América Móvil.74 the pay-TV market and allowed TV services over any platform (removing previous restrictions on IPTV).72 Moreover, the creation of the Serviço de Acesso Condicionado (SeAC) reduced the cost of obtaining an authorization to provide pay-TV services, thus creating an enabling environment for the increase in the number of pay-TV service providers, including the participation of small Brazil is experiencing a surge in triple-play offers, with the three dominant telecommunication groups in the country (Telefónica, América Móvil and Oi) also offering pay TV-services. The most successful in extending its reach to the pay-TV market has been América Móvil: it controls a cable-TV platform (Net) and a pay DTH satellite (Embratel) which together account for more than 50 and medium-sized entrepreneurs.73 per cent of the pay-TV market. Telefónica and Oi each represent Digital TV penetration reached 45 per cent of households by less than 5 per cent of total pay-TV subscriptions in Brazil. The end 2012, up from 34 per cent a year earlier. The Government is other big pay-TV player is Sky, a DTH satellite service provider that gearing up for the 2014 FIFA World Cup and the Rio 2016 summer accounts for 30 per cent of pay-TV subscriptions in the country. Olympics, with the TV and communications sectors set to benefit However, Sky only offers TV services.75 from the extensive network build-out. Increased competition in the pay-TV market is driving down Pay-TV penetration is relatively low in Brazil, at 28 per cent of average revenue per user, especially as operators launch cheaper households in 2012. DTH satellite overtook cable to become packages to attract middle-income homes.76 the dominant pay-TV platform in 2011. There were 9.8 million Brazil chose ISDB-T as the DTT standard. The standard was DTH satellite subscriptions by end 2012 (60 per cent of pay- launched in December 2007, and by May 2012 some 47 per TV subscriptions), up from 2.1 million at end 2008. Most cent of the population were covered by DTT signals.77 Analogue telecommunication operators have launched DTH satellite switch-off is scheduled for June 2016. Sao Paulo metropolitan platforms, and will follow up with IPTV/triple-play packages in areas are due to switch off by March 2015. The Government is the near future. considering set-top box subsidies for low-income households. 184 Measuring the Information Society 2013 Regional figures show that terrestrial TV broadcasting CATV (analogue plus digital) penetration decreased only (analogue plus DTT) has decreased from a 43 per cent slightly in the period 2008-2012, down to 33 per cent of household penetration in 2008 to 36 per cent in 2012. A all households in 2012 (from 35 per cent in 2008), thus more detailed analysis shows that the number of households nearly mirroring the uptake of terrestrial TV broadcasting. with only analogue terrestrial TV broadcasting decreased The number of analogue cable subscriptions decreased by considerably, whereas DTT is growing strongly in the some 22 million between 2008 and 2012, whereas digital region (Chart 5.24). The United States switched off analogue cable subscriptions almost counterbalanced the decrease, terrestrial broadcasting in 2009, and other large countries growing by 21 million in the same period. such as Brazil (Box 5.4) and Canada are progressively 78 switching over to DTT. The growth of DTT in the region is The proportion of households with pay DTH satellite expected to continue in the future, insofar as the remaining increased from 15 per cent in 2008 to 21 per cent in 2012, countries in the region are starting to implement their and IPTV from 1 to 4 per cent in the four-year period. This national strategies for the digital switchover.79 suggests that these two platforms were the most successful in attracting the households with a TV that previously had The Americas is rather unique in terms of DTT technologies, CATV or received only terrestrial TV broadcasting. Free-to-air in that three different standards coexist in the region. The DTH satellite was of little relevance in the Americas: only 1 Japanese ISDB-T standard has been chosen by most South per cent of households relied on it to watch TV. American countries for their DTT networks. In Ecuador, the Japanese Government will supply 40 000 set-top boxes to low-income households. However, the US-backed ATSC standard has been adopted in most of Central and North America, including the countries closer geographically to the United States, such as Canada, Dominican Republic, El Salvador, Honduras, Mexico and Puerto Rico. The European DVB-T standard has been adopted by a minority of countries in the Americas region, such as Colombia and Panama. 5.5 Pay-TV reception The technological and regional review of TV distribution presented so far has analysed both free-to-air broadcasting and pay-TV services. This section analyses in more detail the pay-TV sector, which includes the following technologies: analogue cable, digital cable, IPTV, pay DTH satellite and pay DTT. Chart 5.24: Households with a TV by type of technology, Americas, 2008-2012 Digital TV Research estimates that global pay-TV revenues reached USD 183 billion in 2012, up from USD 145 billion in 2008. DTH satellite contributed USD 80 billion to the 2012 100 90 As % of total households 80 70 60 50 40 30 20 IPTV total, followed by digital cable (USD 66 billion), analogue Pay DTH satellite FTA DTH satellite Digital cable Analogue cable DTT cable (USD 22 billion) and IPTV (USD 12 billion), while pay Analogue terrestrial broadcasting 10 0 2008 2009 2010 2011 DTT had only a small share in total revenues compared with the other pay-TV platforms. Pay TV has been transformed by the shift to digital. Satellite TV has provided numerous channels without the cost of expensive infrastructure build-outs. Cable operators have responded to this threat by upgrading. 2012 The conversion of households to digital TV usually implies Source: Estimates based on Digital TV Research and ITU data. Data cover 20 countries, accounting for 97 per cent of all households in the region. higher average revenue per subscription (ARPU) for the service provider, less piracy and greater product choice for the customer. However, digital television can also work 185 Chapter 5. Digital TV broadcasting trends against the pay-TV sector. For instance, free-to-air DTT usually provides homes with greater channel choice, which could result in some households cancelling their basic payTV subscriptions. to 42 per cent of households with pay TV by end 2012, which means that 53 per cent of all households with a TV had a pay-TV subscription. Indeed, since end 2010 there have been more households with pay TV globally than households with only free-to-air TV. This is particularly true in developed However, pay TV retains the advantage of content exclusivity, providing its subscribers with premium sports rights, for example. There are some instances in which regulatory authorities have decided to act in order to avoid exclusivity of certain key content being used to stifle competition. The most notorious example is the FCC’s Program access rules in the United States, which required cable operators to grant competing satellite-TV providers access to content they owned. The Program access rules were in force between 1992 and 2012, when they were replaced by an ex-post resolution mechanism for programme access complaints on a case-by-case basis.80 A more recent example is the intervention of the United Kingdom’s regulator (Ofcom) to ensure that the dominant pay-TV operator, Sky, supplies two sports channels to competing DTT and CATV operators at regulated wholesale prices.81 The number of pay-TV subscriptions worldwide increased by 32 per cent between 2008 and 2012. Most growth occurred in developing countries, where the percentage of households with pay TV went up from 24 to 34 per cent in the four-year period (Chart 5.25). This brought the world total countries, where more than 60 per cent of households with a TV had a pay-TV subscription by end 2012.82 The Americas was the region displaying the highest pay-TV penetration: almost 60 per cent of households subscribed to pay-TV services by end 2012 (Chart 5.26). This is explained by the high uptake of CATV and pay DTH satellite TV in the region, and the weight of the United States, where 85 per cent of households had pay-TV services (105 million by end 2012). Europe was the other region with more than 50 per cent of households with pay TV. The slightly lower pay-TV penetration compared with the Americas is explained by the development of free-to-air DTT in Europe: 25 per cent of households in Europe received only DTT, compared with only 12 per cent in the Americas. This reflects the more advanced stage of the DTT switchover in Europe, and the fact that most DTT is free. Moreover, this finding suggests that DTT can compete with other multichannel platforms on an equal footing. Household pay-TV penetration increased in Asia and the Pacific from 30 to 41 per cent in the period 2008-2012, with the addition of 115 million new pay-TV subscriptions Chart 5.25: Households with pay TV, world and by development level, 2008-2012 As % of total households 56 58 60 61 62 33 35 37 30 20 with most pay-TV subscriptions (194 million by end 2012), 24 26 29 40 32 42 34 Developed World Developing 10 0 2008 2009 million), taking respectively third and second place in terms of absolute numbers of pay-TV subscriptions. However, pay- 50 40 four-year period). China retained first position as the country while India (100 million) approached the United States (105 70 60 (65 per cent of new pay-TV subscriptions worldwide in the 2010 2011 TV household penetration was around 50 per cent in China and India, well below the 85 per cent in the United States. The CIS region also experienced a significant increase in pay-TV subscriptions between 2008 and 2012: they grew by more than 50 per cent, reaching 37 per cent household penetration in 2012. 2012 Africa and the Arab States were by far the regions with the Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. 186 lowest pay-TV penetration. Nevertheless, the number of pay-TV subscriptions doubled in Africa between 2008 and 2012, and 7 per cent of households in the region subscribed Measuring the Information Society 2013 Chart 5.26: Households with pay TV, by region, 2008-2012 100 90 As % of total households 80 Arab States 70 Africa 60 CIS 50 Asia & Pacific 40 Europe 30 The Americas 20 10 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. to pay TV by end 2012. This dynamism contrasts with the trend in the Arab States: the region experienced little growth in pay-TV subscriptions during the four-year period, with Table 5.3: Top 15 countries by percentage of households with pay TV, 2012 pay-TV household penetration remaining below 5 per cent Country in 2012. This is in line with the predominance of FTA satellite Netherlands 100 TV and analogue terrestrial broadcasting in the region (Chart Norway 97 5.20), both of which are free TV platforms. Belgium 94 Hong Kong, China 94 At the country level, pay-TV penetration was the highest Korea (Rep.) 92 in the Netherlands, Norway, Belgium, Hong Kong (China), Denmark 92 Republic of Korea and Denmark, with more than 90 per Malta 86 cent of households in these countries subscribing to pay-TV Sweden 85 services (Table 5.3). United States 85 Canada 84 Chart 5.27 shows the breakdown of pay-TV subscriptions by Latvia 84 Switzerland 84 Luxembourg 83 Romania 82 Singapore 78 technology. Analogue CATV subscriptions decreased by 89 million between 2008 and 2012, yet they still represented about a third of global pay-TV subscriptions in 2012. The decrease was more than offset by the 136 million digital CATV subscriptions added in the four-year period, propelling % of households with pay TV Source: Estimates based on Digital TV Research and ITU data. digital cable to first position in the ranking of pay-TV subscriptions by technology. Pay DTH satellite subscriptions also increased significantly 2012 they represented about a quarter of global pay-TV between 2008 and 2012 (by 71 million), and by end subscriptions. The highest relative growth, however, was 187 Chapter 5. Digital TV broadcasting trends Chart 5.27: Pay-TV subscriptions by technology, 2008 and 2012 Share in global pay-TV subscriptions 2012 Total: 727 million 2008 Total: 550 million Analogue cable 55% Pay DTT 1% Pay DTT 1% IPTV 3% Analogue cable 30% Digital cable 34% IPTV 10% Pay DTH 20% Digital cable 21% Pay DTH 25% Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. registered by IPTV subscriptions: they increased fourfold the undecided nations are in the Caribbean or in Asia and and added 55 million pay-TV subscriptions between 2008 the Pacific (Figure 5.2).83 and 2012, which confirms that growth was remarkable in absolute terms, too. On the other hand, pay DTT failed to The national and international targets set for the digital take off and stagnated at a marginal 1 per cent of total switchover (section 5.2) are driving DTT deployment, and pay-TV subscriptions. This indicates that pay DTT is still an they are also reflected in current uptake. Digital TV Research emergent TV platform, and that a solid business model has estimates that almost a third of all households in developed yet to be established for pay DTT (see section 5.6). countries had DTT by end 2012, either on its own or in addition to other TV subscriptions (Chart 5.28). In developing countries, there were only 4 per cent of households with 5.6 Digital switchover DTT. This is explained by the advanced level of digital switchover in developed countries, many of which have already switched off terrestrial analogue signals (DigiTAG, Many governments have set deadlines for full conversion 2013) or are at an advanced stage of the switchover process to digital TV technologies and ceasing the broadcasting (e.g. Australia and Canada). of analogue terrestrial signals. Some countries, notably in North America and Europe, had achieved this transition by Of the almost 210 million households with DTT in 2012, end 2012, whereas others are yet to start. Digital TV Research estimates that around 70 per cent were households watching DTT on the main set and not There are four main DTT standards. The DVB-T standard is subscribing to CATV, IPTV or satellite-TV services. most popular in Europe and Africa. The ATSC standard has been adopted in Canada, the United States, the Republic of Europe has long been at the forefront of DTT uptake. Korea and some Central American countries. The Japanese The region surpassed the 40 per cent DTT household ISDB-T standard has been taken up by several Latin penetration mark in 2012 (Chart 5.29). Most of the Western American countries, whereas China uses DMB-T. Many of European countries had switched off their analogue 188 Measuring the Information Society 2013 Figure 5.2: DTT standard adoption by country, January 2013 DVB-T/DVB-T2 ATSC ISDB-T DMB-T Undecided Source: DiBEG (http://www.dibeg.org), DVB Project (http://www.dvb.org/) and ITU. Chart 5.28: Households with DTT, world and by level of development, 2008-2012 35 As % of total households 32 countries. These regions are thus expected to undergo years. 26 20 analogue to digital TV broadcasting set under the GE06 a significant increase in DTT penetration in the next two 29 25 deadline for the completion of the transition period from Agreement also applies to African, Arab States and CIS Developed World Developing 30 European Commission’s extended deadline). The 2015 22 15 12 15 10 7 9 5 5 1 1 2 2008 2009 2010 10 3 4 Brazil, Canada and the United States account for more than 90 per cent of households with DTT in the Americas, whereas all other countries in the region are still in the process of defining digital switchover strategies or in the early stages of their implementation. In the Asia and the 0 2011 2012 Note: Data refer to all households with DTT. These households may also subscribe to cable, satellite or IPTV, but have DTT installed on a secondary TV set. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. Pacific region, the number of households with DTT has doubled in the period 2008-2012, but household DTT penetration reached only 5 per cent in 2012. Taking into account that there were still 239 million households with only analogue terrestrial TV broadcasting in Asia and the Pacific by end 2012 (representing 59 per cent of global households still relying only on analogue terrestrial terrestrial signals by end 2012, whereas the deadline for broadcasts), the digital switchover challenge remains the majority of countries in Eastern Europe is mid-2015 considerable in the region, and will require much policy (in compliance with the ITU GE06 Agreement and the and regulatory attention. 84 189 Chapter 5. Digital TV broadcasting trends Chart 5.29: Households with DTT, by region, 2008-2012 As % of total households Digital Video Recorders (DVRs) and bundles. This testifies to the impact that DTT may have in the TV sector as a whole. 45 Another factor that has a definite impact on DTT uptake is 40 the cost of the reception equipment. The digital switchover 35 requires viewers with old TVs to buy a digital set-top box or 30 directly replace their TV with a new one capable of receiving 25 Asia & Pacific Africa Arab States Europe The Americas CIS 20 DTT. In order to prevent the costs involved from becoming a barrier to DTT adoption, many governments have subsidized 15 the cost of the required set-top box for lower-income 10 households and/or the elderly and persons with disabilities – or even given the boxes away for free. Such policies have 5 been implemented in several developed countries where 0 2008 2009 2010 2011 2012 the switchover has taken place or is currently under way, some examples being Portugal’s Programa de Subsidiação,85 Note: Data refer to all households with DTT. These households may also subscribe to cable, satellite or IPTV, but have DTT installed on a secondary TV set. Source: Estimates based on Digital TV Research and ITU data. Data cover 140 countries, accounting for 98 per cent of all households in the world. the United Kingdom’s “switchover help scheme”86 and Australia’s “Household Assistance Scheme”. 87 In other countries, such as the United States88 and Italy,89 subsidies for purchasing DTT set-top boxes have been made available regardless of household income levels. In parallel to government policies to reduce viewers’ switchover costs, the It should be noted that there are other factors apart from coverage that determine DTT uptake. DTT has achieved higher penetration in countries where analogue terrestrial market prices of set-top boxes have fallen, as manufacturers reach mass-market production levels and competition increases from the supply side. TV broadcasting was a major TV platform before the digital As the digital switchover progresses, the number of free- switchover. For instance, the percentage of households to-air channels is increasing. Administrations are taking with DTT in Germany is low compared to other European advantage of the spectrum efficiency of digital technologies countries, because many homes already subscribed to to award more licences and/or allow existing players more cable or satellite services. On the other hand, DTT has channels. This effect is reinforced by the growing cross- achieved considerable uptake in Italy and Spain, where platform competition, which incites other TV platforms, such pay-TV penetration is relatively low and analogue terrestrial as satellite-TV and IPTV providers, to increase their offer, too. broadcasting was the main TV platform prior to the The growth in the number of available TV channels may switchover. Moreover, the Italian and Spanish Governments have a considerable long-term effect on viewing patterns have endeavoured to create vibrant DTT markets by and lead to audience fragmentation (Lange, 2011; OECD, promoting a large and varied choice of DTT content. 2011). On the one hand, as the newer channels increase Indeed, both countries stand out for having a large number their audience share, the advertising industry reacts by of local channels (Lange, 2011) and some successful spreading budgets. On the other hand, many of the new pay-DTT offers (with larger market shares than the global TV licences are granted to the thematic channels from the average of 1 per cent of total pay-TV subscriptions). This traditional broadcasting groups. As a result, their flagship suggests that when a significant number of DTT channels channel may lose audience share, but the group portfolio are on offer the digital terrestrial platform begins to mirror may sustain the overall share, and even be in a position to the basic packages of traditional pay-TV operators. This offer advertisers a more targeted choice. creates cross-platform competition, which spurs pay-TV operators to lower prices and stress the benefits of their In addition to standard-definition TV channels, some value-added services, such as premium sports rights, governments have awarded high-definition (HD) DTT 190 Measuring the Information Society 2013 licences. For instance, Sweden’s Radio and Television the pay-DTT model in the face of fierce competition from Authority (RTVV) authorized seven HD DTT channels in other multichannel platforms. Nevertheless, Europe had June 2010. HD channels are also available in several other around 7 million pay-DTT subscriptions by end 2012, and EU countries, such as Finland, France, Hungary, Italy, Latvia, thus accounted for more than 80 per cent of global pay-DTT Lithuania, Norway, Spain and the United Kingdom.91 The subscriptions. This is explained by the advanced stage of DVB Project estimates that 24 countries provided high- digital switchover in the region and the wide DTT coverage definition DTT by January 2013, of which two-thirds were achieved, so far unmatched in other regions. 90 92 in Europe. Pay DTT is extending beyond Europe, and is having a HD programmes provide enhanced image quality but particular impact in Africa. Most African countries do not require more spectrum, so more standard-definition have well-established fixed (wired) telecommunication channels could be broadcast with the same amount of networks (i.e. cable, copper or fibre infrastructure), and spectrum. Given these constraints, there are limits on the pay-TV penetration is low, with only 7 per cent of total number of HD channels that can be offered. However, many households subscribing to pay-TV services by end 2012. In of the new sets on sale are HD compatible and a growing this context, the number of pay-DTT subscriptions increased number of households therefore have HD-enabled TVs (ITU, from fewer than 50 000 in 2008 to 1.5 million in 2012. Taking 2013c). This is driving customer demand for HD programmes into account that there were only 10.7 million households and making them an attractive prospect for potential DTT with pay TV in Africa in 2012, pay DTT accounted for 14 per customers. cent of the total in the region. Other governments have assigned spectrum to pay-DTT The growth of pay DTT in Africa is explained by the launch channels (usually alongside free-to-air ones), with mixed of services in Burundi, Central African Republic, Gabon, results. Pay DTT (usually on a prepaid basis) has proved popular in Italy. Pay-DTT operators in Italy have benefited from the absence of cable-TV networks and the limited impact of IPTV (although DTH satellite from Sky Italia provides strong competition in the pay-TV arena). Mediaset Ghana, Kenya, Liberia, Malawi, Mozambique, Namibia, Nigeria, Rwanda, Tanzania, Uganda and Zambia. Analogue terrestrial networks in many of these countries are not in good condition, so DTT is regarded as an opportunity to upgrade the outdated terrestrial broadcasting network, Premium provides 30 linear channels via pay DTT, and one of its main attractions is pay-per-view football from Italy’s top two leagues. Chart 5.30: Households with pay DTT, Africa and Europe, 2008-2012 several countries, such as Cyprus, Ireland and Portugal (Lange, 2011). In France, pay-DTT distributor TV Numeric, which was granted the second national pay-DTT licence in 2011, ceased offering pay-DTT services in December 2012 (CSA, 2013). Global figures confirm that pay DTT has difficulties in taking off: it accounted for only 1 per cent of global payTV subscriptions in 2012 (Chart 5.27). However, at regional level, pay DTT accounts for a more significant share in total pay-TV subscriptions in Africa and Europe (Chart 5.30). Pay DTT represents 5 per cent of total pay-TV subscriptions in Europe, but since 2010 pay-DTT subscriptions have been decreasing. This testifies of the difficulties in consolidating As % of households with pay-TV subscriptions However, pay DTT has been postponed or cancelled in 16 Europe 14 Africa 12 10 8 6 4 2 0 2008 2009 2010 2011 2012 Source: Estimates based on Digital TV Research and ITU data. Data include African and European countries where pay DTT is available. 191 Chapter 5. Digital TV broadcasting trends while providing pay TV to a large share of the population that Over-the-top TV and video is becoming a more attractive cannot afford the premium-priced satellite-TV packages. consumer experience owing to improvements in navigation, Moreover, many of these pay-DTT platforms provide prepaid recommendation, search, DVR functionality and electronic plans, which helps make them affordable for people who programme guides. Viewers want a clear and simple cannot commit to other payment plans. These findings experience, not requiring any technical expertise. In addition, suggest that pay DTT is well positioned to become a very picture and sound quality have improved considerably. important pay-TV platform in Africa and, together with free DTT, a means of reducing the multichannel TV gap that afflicts Africa in comparison with other regions. Furthermore, broadband speeds are increasing as competition forces operators to offer consumers more for similar prices (see Chapter 3). The roll-out of fibre networks (in some cases backed by governments) has added even faster speeds and higher capacity. However, Internet data traffic is increasing 5.7 Over-the-top Internet TV and video exponentially, driven by Internet video and TV, which in 2012 accounted for 57 per cent of consumer Internet traffic (Cisco, 2013b). With the increasing number of interconnected Watching TV and video over the Internet is becoming increasingly popular, and its rapid uptake is expected to continue in parallel with the increase in broadband penetration. Over-the-top (OTT) TV relies on broadband Internet connections, and unlike IPTV does not always require an additional subscription for the TV services provided. For instance, YouTube, the Chinese PPLive and many traditional broadcasting stations offer streaming or downloading of TV and video content on the Internet for free. Other OTT TV providers, such as Netflix and Hulu, charge a pay-per-view or subscription fee for accessing their content. devices (e.g. smartphones, tablets, machine-to-machine data connections), Internet data consumption threatens to outpace network-capacity upgrades. This puts pressure on the supply side, with some broadband operators threatening to increase charges to OTT TV content providers in order to guarantee access. Some middle-ground technical solutions, such as the progress achieved through content delivery networks95 with the participation of both content providers and network operators, have eased the congestion to some extent. Nevertheless, the topic remains one of the main focuses of regulatory discussion (see, for instance, Chapter 2 in ITU, 2013b). Streaming OTT TV and video requires extensive broadband capacity – not only on the part of the viewer, who needs to have a high-speed broadband connection, but also on the part of the broadband network operators which provide the end-to-end bandwidth that determines the quality of experience. Unlike in the case of IPTV, where a QoS similar to that of traditional TV is guaranteed, OTT TV and video is Several governments (such as the Netherlands 96 and Chile97 – while the subject is still being debated in the United States98) have enshrined net neutrality in law, in order to prevent network operators from giving priority to Internet traffic directed to some sites over traffic going to other sites. Some operators have decided to impose data caps on subscriptions in order to limit Internet congestion, delivered on top of the Internet, and thus the QoS depends particularly in mobile-broadband plans (see Chapter 3). on the capacity of each end-to-end connection.93 Some ISPs, such as Virgin Media, offer “through-the-middle” Digital TV Research estimates that global online TV and video revenues increased from USD 3.79 billion in 2010 to services, which provide dedicated bandwidth to online television and video. USD 11.14 billion in 2012. By end-2012, 259 million homes Although watching TV and video on a computer is a much in 40 countries watched online television and video, up better experience than in the past, ‘connected’ televisions from 182 million in 2010. These figures cover online TV and add another dimension to OTT TV and video delivery. video developments over fixed broadband in 40 countries. 94 Many top-of-the-range sets now on sale have an Internet Therefore, they do not include online video consumption connection as standard, with applications preloaded. over smartphones or tablets. Games consoles have offered Internet connectivity (and 192 Measuring the Information Society 2013 therefore OTT access) for some time, and boast a large and this is changing, with some new content being launched growing user base. Blu-ray devices provide a further means directly on the Internet. Nevertheless, there is little OTT live of accessing connected TV. premium content such as sports. Nevertheless, so far online TV cannot fully replicate the Advertising is by far the largest revenue generator in the pay-TV experience. For example, few online providers can online TV and video world. Online TV and video advertising yet match the live sports offers of the traditional pay-TV is the key driver in the OTT TV sector, generating revenues operators. In addition, the traditional pay-TV operators still of USD 6 billion in 2012, up from USD 2.4 billion in 2010. have the upper hand as far as EPGs (electronic programme Many broadcasters provide online catch-up services, which guides – where channels are listed in menus by each pay-TV are usually monetized through advertising. One popular operator) and press recommendation (such as in newspaper exception is the BBC’s iPlayer, which is free to UK residents sections on TV) are concerned, although this advantage is and carries no advertising. In addition to fixed- and mobile- not likely to last for much longer. broadband subscribers, iPlayer is also distributed by some pay-TV operators, such as for instance Virgin and Sky. The Some pay-TV operators have embraced online TV and BBC iPlayer can be viewed on 600 different devices, and has video, as a means of countering competing OTT players. recently been adapted to iPad and Android smartphones. Sky in the United Kingdom launched Now TV in July 2012. Multidevice availability has indeed helped foster the strong Unlike many other OTT platforms provided by traditional increase in viewership requests from mobile devices and pay-TV operators, Now TV is available to all UK broadband tablets (Table 5.4). BBC Worldwide launched iPlayer abroad subscribers, and not just Sky subscribers. Now TV does not as a trial subscription service in mid-2011. offer as much content as Sky’s DTH satellite platform, but makes available a wide choice of pay-per-view movies plus In spite of the fact that subscription revenues still represent live streaming of sports. This allows Now TV to compete only a small share of total OTT TV revenues, they are a fast- with rival pay TV OTT players, such as Lovefilm and Netflix. growing revenue stream. Although the likes of Netflix and Hulu are already reasonably well established as streaming Content is likely to remain the key battleground between subscription services in North America, international online TV and video providers and traditional TV platforms. markets have been relatively untouched – until now. Many people regard online television as a catch-up service for missed shows. The OTT providers have provided little According to estimates from Digital TV Research, revenues in the way of original professional programming, although from online TV and video subscriptions climbed from Table 5.4: BBC iPlayer requests by device, Q4 2010 – Q4 2012, millions Mobile Tablets Computers Games consoles TV operators Others Total 4Q10 16 0 306 26 71 0 419 1Q11 19 0 335 30 73 0 457 2Q11 24 3 307 27 73 12 446 3Q11 26 13 298 27 76 20 460 4Q11 35 23 352 26 85 27 550 1Q12 49 35 343 28 84 25 573 2Q12 45 39 311 30 75 39 539 3Q12 63 49 320 30 70 37 570 4Q12 92 70 315 32 83 47 639 Source: BBC. 193 Chapter 5. Digital TV broadcasting trends Table 5.5: Netflix subscriptions by type of service, Q3 2011 – Q4 2012, millions 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Total streaming subscriptions in the US 21.5 21.7 23.4 23.9 25.1 27.2 Paying streaming subscriptions in the US 20.5 20.2 22.0 22.7 23.8 25.5 1.5 1.9 3.1 3.6 4.3 6.1 Total streaming subscriptions outside the US 1.0 1.5 2.4 3.0 3.7 4.9 Total DVD subscriptions in the US 13.9 11.2 10.1 9.2 8.6 8.2 Paying DVD subscriptions in the US 13.8 11.0 10.0 9.2 8.5 8.1 Paying streaming subscriptions outside the US Source: Netflix. USD 645 million in 2010 to USD 2 553 million in 2012. For example, Netflix paid streaming subscriptions grew by 41 per cent between Q3 2011 and Q4 2012 5.8 Conclusions and recommendations (Table 5.5). A substantial part of the growth came from TV remains important as a source of news and information, international paid streaming subscriptions, following as well as a means of expressing national identity and the launch of services in Canada (September 2010), 43 fostering local content. Its vast coverage and high uptake Latin American and Caribbean countries (September enable TV transmissions to fulfil some of the public services 2011),99 the United Kingdom and Ireland (January 2012), related to communications. At the same time, TV is a and Denmark, Finland, Norway and Sweden (October major market for private content creators, distributors and 2012). Netflix streaming subscriptions can use more networks. These private stakeholders are key to driving TV than 800 different devices to receive the service, and the uptake and underpinning developments in TV networks. company has agreements with major audiovisual content producers, such as Sony Pictures, Disney, Paramount and The growth of digital TV is changing the sector. For the Dreamworks. first time, in 2012 there were more households with digital TV than with analogue TV. The digital switchover brings The OTT TV move towards subscription services will stifle new challenges and opportunities for both policy-makers the pay-per-view and rental market somewhat, since they and operators. Policy initiative is necessary to manage the supply similar consumer propositions. However, online changes in the spectrum allocated for terrestrial TV services, TV and video rental revenues increased from USD 282 guide the analogue terrestrial switch-off, set the rules for the million in 2010 to USD 1 047 million in 2012, according new DTT market and revise those governing other digital to Digital TV Research. The fast take-up of subscription TV markets with a view to fostering competition across TV services will also adversely affect download-to-own (DTO) platforms and service providers. buying patterns, albeit less directly than the rental sector. DTO revenues nevertheless jumped from USD 410 million Operators (both public and private) face the challenge in 2010 to USD 1 545 million in 2012, according to Digital of upgrading their networks to digital technologies, and TV Research. expanding their reach to those regions which are not yet covered. In some cases, operators may need the support Revenue estimates suggest that online pay-TV platforms of governments to meet these challenges, for instance in are driving growth in the pay-per-view market, and that the form of state aid for the extension of TV coverage to there is further room for expansion, particularly if OTT TV remote areas, or demand-side stimulus to make digital services are extended to more countries beyond North TV sets and set-top boxes affordable for low-income America and Europe. households. Actions of this kind will be particularly 194 Measuring the Information Society 2013 information campaigns on the practical steps for households to start receiving the digital signal, etc. relevant in countries with low household TV penetration, such as most African countries and some economies in Asia and the Pacific. • Policy-makers should decide on the use of the digital dividend and make it available as soon as possible. This spectrum is particularly valuable, and well-suited for the coverage of large areas through wireless signals. In view of the increasing spectrum needs of wireless-broadband networks, the allocation of part of the digital dividend for advanced wirelessbroadband networks should be considered. Several developed countries have already assigned it for this purpose, and could serve as a reference for lessons learned on the use of the digital dividend. • There is no one-size-fits-all approach to the regulation of TV-distribution platforms, since different technologies have different relevance in each country. However, policy-makers should consider reviewing the overall regulation of TV networks in order to foster cross-platform competition and ensure that users benefit from it. Because of the historical developments of TV platforms, several technologies currently competing in the same TV markets may be subject to different regulation. Legacy rules applied to the sector should be reviewed in view of convergence and technology neutrality. Competition and channel diversity should be fostered through, inter alia, transparent and streamlined authorization processes. • Countries with low percentages of households with a TV should consider specific initiatives to extend household TV penetration. These initiatives should consider both the demand and supply sides, i.e. actions to increase household access to TV sets and actions to increase the coverage of TV signals. Regarding the latter, the digital switchover is an opportunity to expand the reach of free-to-air multichannel TV, which could be complemented by satellite coverage in remote areas. Availability of relevant content adapted to the local language should be promoted, and could help further boost household TV uptake. Another important trend in TV markets is increasing crossplatform competition. Traditional multichannel TV platforms, such as cable and DTH satellite, face increasing competition from IPTV service providers and even DTT channels. Moreover, TV delivery over the Internet is becoming more and more popular. The convergence of different platforms in the TV market may require a revision of the overall regulation of the sector, but it also constitutes an opportunity to improve consumer choice, make TV services more affordable and extend multichannel TV uptake. Governments can take a number of steps to meet the challenges of the digital TV switchover and ensure that users benefit from better-quality, varied and affordable TV services: • • The digital switchover requires a set of complex government actions (e.g. laws, technical decrees, spectrum reallocation, new authorizations, crossborder frequency coordination) before operators can effectively embark on the process and households can start adapting to the change. Governments should develop national strategies to coordinate all actions needed for the digital switchover. These strategies should include clear targets and deadlines, and be monitored regularly. The population and all relevant stakeholders (including the private sector) should be informed in a transparent way of the progress achieved. This is particularly valid in developing countries, where the digital switchover is still in its early stages. Digital switchover strategies should include specific actions to ensure a smooth and inclusive transition to digital TV. Initiatives that could be undertaken include subsidies for the acquisition of set-top boxes, tax exemptions for DTT consumer equipment, technical assistance for the installation of new equipment or the adjustment of antennas, 195 Chapter 5. Digital TV broadcasting trends Endnotes In a recent survey on Arab media use commissioned by Northwestern University in Qatar, it was found that TV is perceived as the most important source of news and information in most countries included in the study (Qatar, Bahrain, Egypt, Jordan, Saudi Arabia, Lebanon, Tunisia and the United Arab Emirates). Only in Bahrain and Qatar was the Internet considered a more reliable source. This testifies to the importance of TV as a mass communication medium, even in a region where the Arab Spring has highlighted the relevance of other information sources, such as social media. For more details on the study, see http://menamediasurvey.northwestern.edu/. 1 TV is by far the most popular medium with Europeans, and the main source of information for political and European matters. TV is the second most trusted medium after radio (European Commission, 2012a). 2 Multichannel TV refers to services that provide additional TV programming beyond free-to-air analogue terrestrial channels. 3 Non-linear TV services are those in which order and time are determined by the viewer, as opposed to linear broadcasting where programmes are transmitted in a time sequence determined by the broadcaster. 4 See, for instance, Dyle (2012) and the January 2013 Business Insider survey, available at http://www.businessinsider.com/these-10-mobile-video-data-points-will-blow-your-mind-2013-5. 5 Cable television (CATV) service – Multichannel programming delivered over a coaxial cable for viewing on television sets (ITU, 2011b). 6 Direct-to-home (DTH) satellite services – Received via a satellite dish capable of receiving satellite television broadcasts (ITU, 2011b). 7 Internet Protocol TV (IPTV) – Multimedia services such as television/video/audio/text/graphics/data delivered over an IP-based network managed to support the required level of quality of service, quality of experience, security, interactivity and reliability. This does not include video accessed over the public Internet, for example, by streaming. IPTV services are also generally aimed at viewing on a television set rather than a personal computer (ITU, 2011b). 8 For examples of applications that add functionalities to TVs connected to the Internet, see Samsung’s website: http://www.samsung.com/us/article/apps-built-for-your-tv/ or Smart TV’s website: http://www.yourappontv.com/about-smart-tv/featured-apps. 9 For example, people using a TV receiver must pay the TV licence fee in the United Kingdom (http://www.tvlicensing.co.uk/). Likewise, people that receive radio or television services are required to pay licence fees in Switzerland (http://www.srgssr.ch/en/licence-fees/radio-and-tv-licence-fees/). 10 For more information on the ITU expert groups on ICT indicators, see http://www.itu.int/en/ITU-D/Statistics/Pages/definitions/default.aspx. 11 For more details on the ongoing EGH discussions, visit the EGH online forum: http://www.itu.int/net4/ITU-D/forums/EGH. 12 For more details on the ongoing EGTI discussions, visit the EGTI online forum: http://www.itu.int/ITU-D/ict/ExpertGroup. 13 For information on the 11th WTIS, see www.itu.int/en/ITU-D/Statistics/Pages/events/wtis2013. 14 At the 10th WTIM in Bangkok, it was agreed that the name of the meeting should be changed to World Telecommunication/ICT Indicators Symposium (WTIS), from next year onwards. 15 The presentations made in the 10th WTIM are available at http://www.itu.int/en/ITU-D/Statistics/Pages/events/wtim2012/agenda.aspx.The final report can be found at http://www.itu.int/en/ITU-D/Statistics/Documents/events/wtim2012/wtim2012_037_E_doc.pdf. 16 For instance, the number of registered channels in India increased from 524 in 2010 to 831 in 2012 (TRAI, 2012). Another example is the increase in FTA satellite channels in the Arab States, where DTH satellite is the prevalent digital TV technology, see http://www.arabadvisors.com/Pressers/presser-150512.htm-0. 17 The estimates on households with a TV presented in this chapter cover 140 countries, accounting for 98 per cent of all households in the world. Estimates are based on Digital TV Research and ITU data. 18 For an example of an international initiative to improve electrification in Africa, see the World Bank’s “Africa electrification Initiative” (http://go.worldbank.org/WCEDP90SZ0). For a national example, see the projects undertaken by the Rural Electrification Agency of Senegal (http://www.aser.sn/). 19 Digital terrestrial television (DTT) – The technological evolution from analogue terrestrial television, providing capability for significantly more channels (ITU, 2011b). There are four main DTT standards: the European DVB, the United States ATSC, the Japanese ISDB and the Chinese DMB. 20 “[T]he digital dividend is the amount of spectrum made available by the transition of terrestrial television broadcasting from analogue to digital” (ITU, 2012d). 21 For more information on the assignment of the 700 MHz band in the United States, see the FCC’s public notice available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-08-595A1.pdf. 22 See http://www.gsma.com/spectrum/wp-content/uploads/DigitalDividend/DDtoolkit/auctions-summary.html. 23 For example, in the United States Verizon and AT&T were the principal winners of the digital dividend spectrum auctioned in March 2008. Verizon launched LTE services in December 2010 (http://news.verizonwireless.com/LTE/Overview.html), and AT&T started to provide LTE services in several US markets during 2011 (http://www.att.com/gen/press-room?pid=22196&cdvn=news&newsarticleid=33623&mapcode=wireless-networks-general|consumer). 24 For instance, spectrum has been allocated for four national DVB-H networks in Italy. For more information, see pp. 245-247 in AGCOM’s 2012 Annual Report, available at http://www.agcom.it/Default.aspx?message=viewrelazioneannuale&idRelazione=29. For more information on the DVB-H standard, see http://www.dvb-h.org. 25 196 Measuring the Information Society 2013 See, for instance, the status of DTT coverage by region in Brazil by May 2012, at: http://www.anatel.gov.br/Portal/verificaDocumentos/ documento.asp?numeroPublicacao=276894&assuntoPublicacao=Emissoras%20em%20opera%E7%E3o&caminhoRel=In%EDcio-Radiodifus%E3oApresenta%E7%E3o&filtro=1&documentoPath=276894.pdf. Another example is Spain, where the analogue switch-off was organized progressively in three phases (Red.es, 2010). 26 Examples of education campaigns on the transition to DTT include the FCC’s dedicated web portal (http://www.dtv.gov) or the Argentine Administration’s website to provide information on FTA digital TV (http://www.tda.gov.ar). 27 For more information on the Digital Television Transition in the United States and Public Safety Act of 2005, see http://www.ntia.doc.gov/legacy/otiahome/dtv/index.htm. 28 For more information on the the Digital Migration Policy for Television Broadcasting in Uganda, see http://www.ucc.co.ug/files/downloads/Digital_Migration_policy.pdf. 29 For instance, policies mandating digital tuners in new TV sets were enforced in France, Italy, Spain and the United States in advance of the dates sets for the analogue switch-off (see p. 11 in DigiTAG, 2013). 30 For more information on GE06, see http://www.itu.int/ITU-D/asp/CMS/Events/2011/ITU-ANFR/ITU_GE06.pdf. 31 The planning area covers 120 countries; however, 13 countries were not able to attend RRC-06. 32 The compatibility calculations and analysis required a substantial amount of computer capacity and time, in the order of 90 PC-days for each iteration of the Plan. Four iterations were conducted during the conference. Two independent distributed computing systems were implemented to provide additional flexibility and reliability: ITU’s distributed computer system, consisting of 100 high-speed (3.6 GHz) hyper-thread PCs, capable of running 200 parallel jobs, and CERN’s computer grid structure (small part) using more than 300 PCs located at its member institutions in Germany, Russian Federation, Italy, France and Spain. 33 Prominent landforms – such as the Atlantic and Indian oceans and high mountain ridges – limit radio-frequency propagation across countries and regions. Conversely, in the absence of geographical barriers, broadcasts go beyond country borders and therefore require cross-border frequency coordination. The ITU Radio Regulations define three regions for the purposes of international frequency planning. The GE06 Agreement covers Region 1 and the Islamic Republic of Iran. For more information on GE06, see http://www.itu.int/ITU-R/terrestrial/broadcast/plans/ge06/. 34 The transition period is defined as the period following RRC-06 during which the assignments in the Analogue Plan shall be protected. This means that, after the end of the transition period, analogue broadcasting stations may continue to operate as long as they do not cause unacceptable interference to, and do not claim protection from, the digital assignments in the GE06 Plan. 35 Nearly all TV channels currently being broadcast by satellite are digital. Fewer than 50 analogue channels remain in operation, among the several thousands of digital TV channels broadcast by satellite, see http://www.sathint.com/search?custom=analog&filter=tv. 36 For more information on the “Tunga TV” programme, see http://minict.gov.rw/ict/flagship-programmes/tunga-tv?lang=en. 37 For example, in Spain DTT coverage is complemented by a common satellite platform that integrates all state broadcasters, and provides the circa 1.5 per cent additional population coverage needed to reach universal digital TV service (Red.es, 2010). 38 For more information on BSkyB bundles, see http://www.sky.com/shop/bundles/popular/. 39 For more information on the first cable TV transmissions in India, see http://www.indiancabletv.net/cabletvhistory.htm. 40 There were around 60 000 cable TV operators in India in 2012 (TRAI, 2012). 41 For more information on India’s legislation on cable networks, see http://www.trai.gov.in/Content/TelecomDescription.aspx?id=138&qid=2&pg=0. 42 For more information on regulation of CATV operators in China, see Administration Order (No. 67) of the State Administration of Radio Film and Television, available at http://www.sarft.gov.cn/articles/2011/12/12/20111212145719710703.html. 43 For more information on the Ministry of Information and Broadcasting’s acts and decrees, see: http://www.mib.nic.in/linksthird.aspx. 44 For more information, see the Arab Advisors’ press release: http://www.arabadvisors.com/Pressers/presser-150512.htm-0. 45 For more information on Njoi, see www.njoi.com.my. 46 For more information on Sentech, see http://www.sentech.co.za/content/direct-home-satellite-distribution-platform. 47 For more information on bundling in Europe, see the EU’s E-Communications Household Survey from June 2012: http://ec.europa.eu/public_opinion/archives/ebs/ebs_381_en.pdf. 48 On 10 June 2013, the President of Mexico signed the bill called “Reforma Constitucional en Materia de Telecomunicaciones y Competencia Económica”, which includes several measures to foster competition in the telecommunication and pay-TV sectors. For more information, see http://www.presidencia.gob.mx/articulos-prensa/gracias-al-pacto-por-mexico-nuestro-pais-demuestra-que-si-es-capaz-de-transformarse-endemocracia-epn/. 49 By end 2011, an estimated 43 per cent of homes in the European Union subscribed to a bundle including at least two ICT services, and half of these bundles included television channels (European Commission, 2012b). 50 France Telecom includes 160 channels (http://abonnez-vous.orange.fr/residentiel/comparer-offres-internet.aspx?rdt=o), SFR includes 170 (http://adsl.sfr.fr/boxdesfr.html#sfrintid=V_nav_adsl_adsl&sfrclicid=V_nav_adsl_adsl) and Free includes 200 (http://www.free.fr/adsl/index.html). 51 For more information on Dyle, see http://www.dyle.tv/about/mcv/. 52 For more details on DStv, see http://www.dstvmobile.com/south-africa/. 53 For more information on Movistar’s mobile IPTV service, see http://www.movistar.es/particulares/television/ficha/imagenio-en-el-movil. 54 197 Chapter 5. Digital TV broadcasting trends For more details on Etisalat’s Mobile TV, see http://www.etisalat.ae/en/personal/mobile/plans/prepaid/mobile-tv.jsp. 55 GNI per capita, Atlas method (current USD). Source: World Bank, http://data.worldbank.org/. 56 For more information on prices of set-top boxes in Nigeria, see http://www.nigeriamobilesworld.com/5445/digital-tv-decoder-still-at-affordable-prices/. 57 StarTimes is engaged in the construction of digital TV transmission platforms in Burundi, Central African Republic, Kenya, Nigeria, Guinea, Rwanda, Tanzania and Uganda. The operator is also trying to extend its business to Benin, Congo (Dem. Rep.), Mozambique and Senegal. Source: http://en.startimes.com.cn/projectbrief/index.htm. 58 GOtv is available in eight countries: Ghana, Kenya, Malawi, Namibia, Nigeria, Uganda, Zambia and Zimbabwe. Source: www.gotvafrica.com. GOtv is owned by the South African pay-TV operator Multichoice, which offers satellite pay-TV services in several African countries. 59 For more information on Zuku’s operations, see http://www.zuku.co.ke/info/about-us.html. 60 Some regions of Australia, such as Adelaide, Perth and surrounding areas have already switched off analogue terrestrial TV broadcasts. Others will follow until end 2013. The switch-off plan includes complementary coverage through satellite retransmission of the digital signal in areas out of the coverage of the terrestrial digital broadcasting network. For more information, see http://www.acma.gov.au/Citizen/Consumer-info/Ready-for-digital-TV/Analog-switch-off. 61 See endnotes 42-44. 62 Ibid. 63 For more information on Tricolor, see: http://tricolor.tv/eng. 64 For more information of DVB-C implementation in Belarus, see the websites of Cosmos TV (http://cosmostv.by), MTIS (http://www.mtis.by) and Garant (http://garant.by, http://www.garant-tv.by). 65 For the map of current DTT coverage in Belarus, see http://www.brtpc.by/files/mapdvb.jpg. 66 The complete schedule for analogue switch-off in Belarus is available at http://www.mpt.gov.by/ru/new_page_5_2_15108/. 67 Countries considered as Western Europe are Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Malta, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and United Kingdom. Countries included in Eastern Europe are Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, TFYR Macedonia and Turkey. 68 For the latest data on FTTH/B penetration in Europe, see the press note from FTTH Council Europe released in February 2013, available at http://www.ftthcouncil.eu/documents/PressReleases/2013/PR2013_EU_Ranking_FINAL.pdf. For more details on the impact that fibre technologies may have on TV delivery, see also http://www.ftthcouncil.eu/documents/Opinions/2013/Broadcast_Belgium_Final.pdf. 69 Bundling has proven very attractive across Europe: around 43 per cent of households in Europe subscribed to a bundle by end 2011. The Netherlands, Belgium, France and Slovenia had more than 60 per cent of households subscribing to bundled services, whereas the Czech Republic, Bulgaria and Finland were all below 25 per cent. Half of the homes taking a bundle opted to include TV services as part of their deal (European Commission, 2012b). 70 For more information on the TV services offered by Free, see http://www.free.fr/adsl/television.html. 71 See Law No. 12.485 of September 2011, available at http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2011/Lei/L12485.htm#art40. 72 For more information on SeAC, see p.107 in ANATEL (2013) and http://www.anatel.gov.br/Portal/exibirPortalPaginaEspecial.do?acao=&codItemCanal =1714&codigoVisao=4&nomeVisao=Cidad%E3o&nomeCanal=TV%20por%20Assinatura&nomeItemCanal=SeAC. 73 For market shares by operator, see ANATEL (2013), p. 107. 74 For more information on the pay-TV market in Brazil, see ANATEL (2013), pp. 101-107, and the overview of telecommunication groups in Brazil provided by the consultancy firm Teleco, available at http://www.teleco.com.br/en/en_operadoras/grupos.asp. 75 For a benchmark of average prices for basic pay-TV packages, see http://www.teleco.com.br/en/en_rtv.asp. 76 By May 2012, 47 per cent of the population and 46 per cent of localities in Brazil were covered by DTT. For the latest official figures on DTT coverage in Brazil, see ANATEL’s note available at http://www.anatel.gov.br/Portal/exibirPortalRedireciona.do?codigoDocumento=277056&caminhoRel=In%E Dcio-Radiodifus%E3o-Apresenta%E7%E3o. 77 Many Canadian local stations stopped analogue terrestrial broadcasting by end August 2011. For more details on Canada’s transition to DTT, see http://digitaltv.gc.ca/eng/1297877456613/1298648705530. 78 For instance, in 2011 Argentina approved the authorization for the operator providing the DTT transmission infrastructure in the country (Decree 835/2011), and DTT is already available in several regions (see http://www.tda.gov.ar/contenidos/mapa.html). In Uruguay, the Ministry of Industry, Energy and Mining approved two laws mandating the cleaning and refarming of the analogue broadcasting spectrum, and setting the deadline for analogue switch-off for some operators (see Decrees 73 and 231 from 2011). 79 For more information on the expiry of the FCC’s Program access rules in the United States, see http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db1005/FCC-12-123A1.pdf. 80 For more information on Ofcom’s ruling on Sky exclusive content, see http://stakeholders.ofcom.org.uk/consultations/third_paytv/statement/. 81 Households with only free-to-air broadcasting in countries where a licence fee is levied from all households with a TV to finance the public broadcasters are not counted as households with pay TV. 82 198 Measuring the Information Society 2013 For more details on the technical specifications of the different DTT transmission standards, see Part 4 in ITU (2010). 83 The deadline set in the EU’s Radio Spectrum Policy Programme to make available the 800 MHz band for electronic communication services. Specific derogations until end 2015 have been granted to those EU countries with “exceptional national or local circumstances or cross-border frequency coordination problems” (European Parliament, Council, 2012). 84 For more information on the subsidies granted for the acquisition of set-top boxes in Portugal, see pp. 76-80 of the final report of the Digital Television Migration Monitoring Group, available at http://www.anacom.pt/streaming/GAM-TD_25+out2012.pdf?contentId=1142587&field=ATTACHED_FILE. 85 For more details on the United Kingdom’s “switchover help scheme”, see http://www.helpscheme.co.uk/. 86 For more information on Australia’s “Household Assistance Scheme”, see http://www.digitalready.gov.au/government-assistance/household-assistance-scheme. 87 See endnote 29. 88 The European Commission challenged the aid provided for the purchase of DTT decoders in Italy because it considered it contravened the EU regulation on state aid. For more information, see DigiTAG (2013) and the note of the European Audiovisual Observatory on Italy, available at http://mavise.obs.coe.int/country?id=18. 89 Source: European Audiovisual Observatory, see http://mavise.obs.coe.int/country?id=26. 90 Source: European Audiovisual Observatory and Lange (2011). 91 For more information on the DVB Project, see http://www.dvb.org/. 92 Regular Internet data transmissions are managed on a ‘best effort’ basis, and therefore no minimum quality of service is guaranteed to the end user by the ISP. 93 Countries covered in these estimates are: Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong (China), Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Singapore, South Africa, Republic of Korea, Spain, Sweden, Switzerland, Turkey, United Kingdom and the United States. 94 A content delivery network (CDN) is a system of servers in multiple centres that allows easy and rapid access to content by bringing it close to the end-user. 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(2010), The Mobile Phone Market in Bangladesh: Competition Matters. Journal of Asian and African Studies, 45(6), 2010. Available at: http://jas.sagepub.com/content/45/6/610.full.pdf+html. 207 Measuring the Information Society 2013 Annex 1. ICT Development Index (IDI) methodology This annex outlines the methodology used to compute the modem). It also includes fixed wireless local loop (WLL) IDI, and provides more details on various steps involved, such connections, which are defined as services provided by as the indicators included in the index and their definition, licensed fixed-line telephone operators that provide last-mile the imputation of missing values, the normalization access to the subscriber using radio technology, when the procedure, the weights applied to the indicators and sub- call is then routed over a fixed-line telephone network (and indices, and the results of the sensitivity analysis. not a mobile-cellular network). In the case of VoIP, it refers to 1. Indicators included in the IDI subscriptions that offer the ability to place and receive calls at any time and do not require a computer. VoIP is also known as voice-over-broadband (VoB), and includes subscriptions The selection of indicators was based on certain criteria, through fixed-wireless, DSL, cable, fibre-optic and other fixed- including relevance for the index objectives, data availability broadband platforms that provide fixed telephony using IP. and the results of various statistical analyses such as the principal component analysis (PCA).1 The following 2. Mobile-cellular telephone subscriptions per 100 11 indicators are included in the IDI (grouped by the three inhabitants sub-indices: access, use and skills). ICT infrastructure and access indicators Mobile-cellular telephone subscriptions refers to the number of subscriptions to a public mobile-telephone service which provides access to the public switched telephone Indicators included in this group provide an indication of the network (PSTN) using cellular technology. It includes both available ICT infrastructure and individuals’ access to basic the number of postpaid subscriptions and the number of ICTs. Data for all of these indicators are collected by ITU.2 active prepaid accounts (i.e. that have been active during 1. Fixed-telephone subscriptions per 100 inhabitants Fixed-telephone subscriptions refers to the sum of active analogue fixed-telephone lines, voice-over-IP ( VoIP) subscriptions, fixed wireless local loop (WLL) subscriptions, the past three months). It includes all mobile-cellular subscriptions that offer voice communications. It excludes subscriptions via data cards or USB modems, subscriptions to public mobile data services, private trunked mobile radio, telepoint, radio paging and telemetry services. ISDN voice-channel equivalents and fixed public payphones. 3. International Internet bandwidth (bit/s) per Internet It includes all accesses over fixed infrastructure supporting user voice telephony using copper wire, voice services using Internet Protocol (IP) delivered over fixed (wired)-broadband International Internet bandwidth refers to the total used infrastructure (e.g. DSL, fibre optic), and voice services capacity of international Internet bandwidth, in megabits provided over coaxial-cable television networks (cable per second (Mbit/s). It is measured as the sum of used 209 Annex 1. ICT Development Index (IDI) methodology capacity of all Internet exchanges offering international bandwidth. If capacity is asymmetric, then the incoming ICT use indicators capacity is used. International Internet bandwidth (bit/s) per The indicators included in this group capture ICT intensity Internet user is calculated by converting to bits per second and usage. Data for all of these indicators are collected by and dividing by the total number of Internet users. ITU.5 4. Percentage of households with a computer 1. Percentage of individuals using the Internet A computer refers to a desktop computer, a laptop computer Individuals using the Internet refers to people who used the or a tablet or similar handheld computer. It does not include Internet from any location and for any purpose, irrespective equipment with some embedded computing abilities, such of the device and network used. It can be via a computer as smart TV sets, and devices with telephony as a main (i.e. desktop computer, laptop computer or tablet or similar function, such as mobile or smartphones. Household with a handheld computer), mobile phone, games machine, digital computer means that the computer is available for use by TV etc.). Access can be via a fixed or mobile network. any member of the household at any time. 3 Data are obtained by countries through national household Data are obtained by countries through national household surveys and are either provided directly to ITU by national surveys and are either provided directly to ITU by national statistical offices (NSO), or ITU carries out the necessary statistical offices (NSO), or ITU carries out the necessary research to obtain them, for example from NSO websites. research to obtain them, for example from NSO websites. There are certain data limits to this indicator, insofar as There are certain data limits to this indicator, insofar as estimates have to be calculated for many developing estimates have to be calculated for many developing countries which do not yet collect ICT household statistics. countries which do not yet collect ICT household statistics. Over time, as more data become available, the quality of Over time, as more data become available, the quality of the indicator will improve. the indicator will improve. 5. Percentage of households with Internet access 2. Fixed (wired)-broadband subscriptions per 100 inhabitants The Internet is a worldwide public computer network. It Fixed (wired)-broadband subscriptions refers to the number provides access to a number of communication services, of subscriptions for high-speed access to the public Internet including the World Wide Web, and carries e-mail, news, entertainment and data files, irrespective of the device used (not assumed to be only a computer – it may also be a mobile phone, games machine, digital TV, etc.). Access can be via a fixed or mobile network. Household with Internet access means that the device to access the Internet is available for use by any member of the household at any time.4 Data are obtained by countries through national household surveys and are either provided directly to ITU by national statistical offices (NSO), or ITU carries out the necessary (a TCP/IP connection). High-speed access is defined as downstream speeds equal to, or greater than, 256 kbit/s. Fixed (wired) broadband includes cable modem, DSL, fibre and other fixed (wired)-broadband technologies (such as Ethernet LAN, and broadband-over-powerline (BPL) communications). Subscriptions with access to data communications (including the Internet) via mobile-cellular networks are excluded. 3. Wireless-broadband subscriptions per 100 inhabitants research to obtain them, for example from NSO websites. Wireless-broadband subscriptions refers to the sum of satellite There are certain data limits to this indicator, insofar as broadband, terrestrial fixed wireless broadband and active estimates have to be calculated for many developing mobile-broadband subscriptions to the public Internet. countries which do not yet collect ICT household statistics. Over time, as more data become available, the quality of the indicator will improve. 210 • Satellite broadband subscriptions refers to the number of satellite Internet subscriptions with an advertised Measuring the Information Society 2013 download speed of at least 256 kbit/s. It refers to the 1. Adult literacy rate retail subscription technology and not the backbone technology. • Terrestrial fixed wireless broadband subscriptions refers to the number of terrestrial fixed wireless Internet subscriptions with an advertised download speed of at least 256 kbit/s. This includes fixed WiMAX and fixed wireless subscriptions, but excludes occasional users at hotspots and Wi-Fi hotspot subscribers. It also excludes mobile-broadband subscriptions where users can access a service throughout the country wherever coverage is available. • According to UIS, the Adult literacy rate is defined as the percentage of population aged 15 years and over who can both read and write with understanding a short simple statement on his/her everyday life. Generally, ‘literacy’ also encompasses ‘numeracy’, the ability to make simple arithmetic calculations. The main purpose of this indicator is to show the accumulated achievement of primary education and literacy programmes in imparting basic literacy skills to the population, thereby enabling them to apply such skills in daily life and to continue learning and communicating using the written word. Literacy represents Active mobile-broadband subscriptions refers to the a potential for further intellectual growth and contribution sum of standard mobile-broadband subscriptions to economic-socio-cultural development of society.” 6 and dedicated mobile-broadband data subscriptions to the public Internet. It covers actual subscribers, not potential subscribers, even though the latter may have broadband-enabled handsets. Standard mobilebroadband subscriptions refers to active mobilecellular subscriptions with advertised data speeds of 256 kbit/s or greater that allow access to the greater Internet via HTTP and which have been used to set up an Internet data connection using Internet Protocol (IP) in the past three months. Standard SMS and MMS messaging do not count as an active Internet data connection, even if the messages are delivered via IP. Dedicated mobile-broadband data subscriptions refers to subscriptions to dedicated data services (over a mobile network) that allow access to the greater Internet and which are purchased separately from voice services, either as a standalone service (e.g. using a data card such as a USB modem/ dongle) or as an add-on data package to voice services which requires an additional subscription. All dedicated mobile-broadband subscriptions with recurring subscription fees are included regardless of actual use. Prepaid mobile-broadband plans require use if there is no monthly subscription. This indicator could also include mobile WiMAX subscriptions. ICT skills indicators 2. Gross enrolment ratio (secondary and tertiary level) According to UIS, “The gross enrolment ratio is the total enrolment in a specific level of education, regardless of age, expressed as a percentage of the eligible official school-age population corresponding to the same level of education in a given school-year.” 2. Imputation of missing data A critical step in the construction of the index is to create a complete data set, without missing values. There are several imputation techniques that can be applied to estimate missing data.7 Each of the imputation techniques, like any other method employed in the process, has its own strengths and weaknesses. The most important consideration is to ensure that the imputed data will reflect a country’s actual level of ICT access, usage and skills. Given that ICT access and usage are both correlated with national income, hot-deck imputation was chosen as the method for estimating the missing data. Hotdeck imputation uses data from countries with “similar” characteristics, such as GNI per capita and geographic location. For example, missing data for country A were estimated for a certain indicator by first identifying the countries that have similar levels of GNI per capita and that Data on adult literacy rates and gross secondary and tertiary are from the same region and an indicator that has a known enrolment ratios are collected by the UNESCO Institute for relationship to the indicator to be estimated. For instance, Statistics (UIS). fixed (wired)-broadband subscription data of country A was 211 Annex 1. ICT Development Index (IDI) methodology estimated by using fixed (wired)-broadband subscription 4 091 440. To diminish the effect of outliers at the high end of the value scale, the data were first transformed to a logarithmic (log) scale. The ideal value was then computed by adding two standard deviations to the mean of the rescaled values, resulting in a log value of 5.79. data of country B from the same region with similar level of GNI per capita and similar level of Internet subscriptions. The same logic was applied to estimate missing data for all indicators included in the index. 3. Normalization of data • Mobile-cellular subscriptions, which in 2012 range from 5.5 to 284.3 per 100 inhabitants. The ideal value was computed using the same methodology as used for the bandwidth data, by adding two standard deviations to the mean. The resulting reference value was 190 subscriptions per 100 inhabitants. • Fixed-telephone subscriptions per 100 inhabitants, which range from zero to 61.9 in 2012. The same methodology was used to compute the reference value, resulting in a rounded value of 60 per 100 inhabitants. • Fixed (wired)-broadband subscriptions per 100 inhabitants. Values range from zero to 41.9 per 100 inhabitants in 2012. In line with fixed-telephone subscriptions, the ideal value was defined at 60 per 100 inhabitants. Normalization of the data is necessary before any aggregation can be made in order to ensure that the data set uses the same unit of measurement. For the indicators selected for the construction of the IDI, it is important to transform the values to the same unit of measurement, since some of them are expressed as a percentage of the population or of households, whereby the maximum value is 100, while other indicators (although also expressed as a percentage) can have values exceeding 100, such as mobile-cellular subscriptions or international Internet bandwidth. There are certain particularities that need to be taken into consideration when selecting the normalization method for the IDI. For example, in order to identify the digital divide, it is important to measure the relative performance of countries (i.e. the divide among countries). Second, the normalization procedure should produce index results that allow countries to track progress of their evolution towards an information society over time. A further important criterion for the selection of the normalization method was to choose one that can be replicated by countries. Indeed, some countries have shown a strong interest in applying the index methodology at the national or regional level. Therefore, certain methods cannot be applied, for example those that rely on the values of other countries, which might not be available to users. For the IDI, the distance to a reference measure was used as the normalization method. The reference measure is the ideal value that could be reached for each variable (similar to a goalpost). In all of the indicators chosen, this will be 100, except for four indicators: • 212 International Internet bandwidth per Internet user, which in 2012 ranges from 87 (bits/s/user) to almost After normalizing the data, the individual series were all rescaled to identical ranges, from 1 to 10. This was necessary in order to compare the values of the indicators and the sub-indices. 4. Weighting and aggregation The indicators and sub-indices included in the IDI were weighted based on the PCA results obtained when the index was first computed.8 Annex Box 1.1 presents the weights for the indicators and sub-indices. 5. Calculating the IDI Sub-indices were computed by summing the weighted values of the indicators included in the respective subgroup. • ICT access is measured by fixed-telephone subscriptions per 100 inhabitants, mobile-cellular subscriptions per 100 inhabitants, international Internet bandwidth per Internet user, percentage of households with a computer and percentage of households with Internet access. Measuring the Information Society 2013 Annex Box 1.1: Weights used for indicators and sub-indices included in the IDI Weights (Indicators) Weights (Sub-indices) ICT access Fixed-telephone subscriptions per 100 inhabitants 0.20 Mobile-cellular telephone subscriptions per 100 inhabitants 0.20 International Internet bandwidth per Internet user 0.20 Percentage of households with a computer 0.20 Percentage of households with Internet access 0.20 0.40 ICT use Percentage of individuals using the Internet 0.33 Fixed (wired)-broadband Internet subscriptions per 100 inhabitants 0.33 Wireless-broadband subscriptions per 100 inhabitants 0.33 0.40 ICT skills Adult literacy rate 0.33 Secondary gross enrolment ratio 0.33 Tertiary gross enrolment ratio 0.33 0.20 Source: ITU. • • ICT use is measured by percentage of individuals using the Internet, fixed (wired)-broadband Internet subscriptions per 100 inhabitants and wirelessbroadband subscriptions per 100 inhabitants. ICT skills are approximated by adult literacy rate, secondary gross enrolment ratio and tertiary gross enrolment ratio. 6. Sensitivity analysis Sensitivity analysis was carried out to investigate the robustness of the index results, in terms of the relative position in the overall ranking, using different combinations of methods and techniques to compute the index. Potential sources of variation or uncertainty can be attributed The values of the sub-indices were calculated first by to different processes employed in the computation of the normalizing the indicators included in each sub-index index, including the selection of individual indicators, in order to obtain the same unit of measurement. the imputation of missing values and the normalization, The reference values applied in the normalization were weighting and aggregation of the data. discussed above. The sub-index value was calculated by taking the simple average (using equal weights) of the Each of the processes or combination of processes affects normalized indicator values. the IDI value. A number of tests were carried out to examine the robustness of the IDI results (rather than the actual For computation of the final index, the ICT access and values). The tests computed the possible index values ICT use sub-indices were given 40 per cent weight each, and country rankings for different combinations of the and the skills sub-index (because it is based on proxy processes mentioned above. Results show that, while the indicators) 20 per cent weight. The final index value was computed index values change, the message remains the then computed by summing the weighted sub-indices. same. The IDI was found to be extremely robust to different Annex Box 1.2 illustrates the process of computing the IDI methodologies – with the exception of some countries, for the Republic of Korea (which tops the IDI 2012). particularly countries in the “high” group. 213 Annex 1. ICT Development Index (IDI) methodology Annex Box 1.2: Example of how to calculate the IDI value KOREA (REP.) Indicators ICT access 2012 Ideal value* a Fixed-telephone subscriptions per 100 inhabitants 60 62.0 b Mobile-cellular telephone subscriptions per 100 inhabitants 190 110.4 621,834 26,035 c International Internet bandwidth per Internet user** d Percentage of households with a computer 100 82.3 e Percentage of households with Internet access 100 97.4 84.1 ICT use f Percentage of individuals using the Internet 100 g Fixed (wired)-broadband Internet subscriptions per 100 inhabitants 60 37.6 h Wireless-broadband subscriptions per 100 inhabitants 100 106.0 ICT skills i Adult literary rate 100 97.1 j Secondary gross enrolment ratio 100 103.1 k Tertiary gross enrolment ratio Normalized values 100 99.0 Formula Weight ICT access z1 Fixed-telephone subscriptions per 100 inhabitants a/60 0.20 z2 Mobile-cellular telephone subscriptions per 100 inhabitants b/190 0.20 1.00 0.58 z3 International Internet bandwidth per Internet user log(c)/5.79 0.20 0.76 z4 Percentage of households with a computer d/100 0.20 0.82 z5 Percentage of households with Internet access e/100 0.20 0.97 ICT use z6 Percentage of individuals using the Internet f/100 0.33 0.84 z7 Fixed (wired)-broadband Internet subscriptions per 100 inhabitants g/60 0.33 0.63 z8 Wireless-broadband subscriptions per 100 inhabitants h/100 0.33 1.00 0.97 ICT skills z9 Adult literary rate i/100 0.33 z10 Secondary gross enrolment ratio j/100 0.33 1.00 z11 Tertiary gross enrolment ratio k/100 0.33 0.99 Formula Weight y1+y2+y3+y4+y5 0.40 Sub-indices IDI access sub-index (L) 0.83 y1 Fixed-telephone subsriptions per 100 inhabitants z1*.20 0.20 y2 Mobile-cellular telephone subscriptions per 100 inhabitants z2*.20 0.12 y3 International Internet bandwidth per Internet user z3*.20 0.15 y4 Percentage of households with a computer z4*.20 0.16 y5 Percentage of households with Internet access z5*.20 IDI use sub-index (M) y6+y7+y8 0.19 0.40 0.82 y6 Percentage of individuals using the Internet z6*.33 0.28 y7 Fixed (wired)-broadband Internet subscriptions per 100 inhabitants z7*.33 0.21 y8 Wireless-broadband subscriptions per 100 inhabitants IDI skills sub-index (N) z8*.33 y9+y10+y11 0.33 0.20 0.98 y9 Adult literary rate z9*.33 y10 Secondary gross enrolment ratio z10*.33 0.33 y11 Tertiary gross enrolment ratio z11*.33 0.33 IDI ICT Development Index ((L*.40)+(M*.40)+(N*.20))*10 8.57 Note: 0.32 * The ideal value for indicators a, b, c and g was computed by adding two standard deviations to the mean value of the indicator. ** To diminish the effect of the large number of outliers at the high end of the value scale, the data were first transformed to a logarithmic (log) scale. The ideal value of 621’834 bit/s per Internet user is equivalent to 5.79 if transformed to a log scale. Source: ITU. 214 Measuring the Information Society 2013 The relative position of countries included in the “high” group (see Chapter 2) can change depending on the methodology used. Therefore, caution should be exercised when drawing conclusions based on the ranking of these countries. the “low” group is in no way affected by the methods or techniques used, and the countries in this group ranked low in all index computations using different methodologies. This confirms the results conveyed by the IDI. However, the relative position of countries included in 215 Annex 1. ICT Development Index (IDI) methodology Endnotes Principal component analysis was used to examine the underlying nature of the data. A more detailed description of the analysis is available in the Annex 1 to the 2009 ‘Measuring the Information Society. The ICT Development Index’ report (ITU, 2009a). 1 More information about the indicators is available in the ITU “Handbook for the collection of administrative data on telecommunications/ICT’” 2011, see ITU 2011b and the ITU “Manual for Measuring ICT Access and Use by Households and Individuals”, see ITU 2009b. 2 This definition reflects the revisions agreed upon by the ITU Expert Group on ICT Household Indicators (EGH) at its meeting in Sao Paulo, Brazil, on 4-6 June 2013, see http://www.itu.int/en/ITU-D/Statistics/Documents/events/brazil2013/Final_report_EGH.pdf ). As the data used in the calculation of the IDI were collected before that meeting, however, the data may not necessarily reflect these revisions. 3 See endnote 3. 4 See endnote 2. 5 UIS ‘Education Indicators: Technical Guidelines’, see http://www.uis.unesco.org/ev.php?ID=5202_201&ID2=DO_TOPIC. 6 See OECD and European Commission (2008). 7 For more details, see Annex 1 to ITU (2009a). 8 216 Measuring the Information Society 2013 Annex 2. ICT price data methodology 1. Price data collection and sources 2. The ICT Price Basket (IPB) The price data presented in this report were collected The ICT Price Basket (IPB) is a composite basket that in the fourth quarter of 2012. The data were collected includes three price sets, referred to as sub-baskets: the through the ITU ICT Price Basket questionnaire, which fixed-telephone, mobile-cellular and fixed-broadband was sent to the administrations and statistical contacts sub-baskets. The IPB is the value calculated from the sum of all 193 ITU Member States in October 2012. Through of the price of each sub-basket (in USD) as a percentage the questionnaire, contacts were requested to provide of a country’s monthly GNI per capita, divided by three. 2012 data for fixed-telephone, mobile-cellular, fixed- The collection of price data from ITU Member States broadband and mobile-broadband prices; the 2010 and the methodology applied for the IPB was agreed and 2011 prices were included for reference, where upon by the ITU Expert Group on Telecommunication/ available. For those countries that did not reply, prices ICT Indicators (EGTI)1 and endorsed by the eighth World were collected directly from operators’ websites and/or Telecommunication/ICT Indicators Meeting (WTIM) held through direct correspondence. Prices were collected in November 2010 in Geneva, Switzerland. from the operator with the largest market share, as measured by the number of subscriptions. Insofar as, for many countries, it is not clear which Internet service provider (ISP) has the dominant market share, preference was given to prices offered by the (former) incumbent telecommunication operator. In some cases, especially when prices were not clearly advertised or were described only in the local language, and when operators did not respond to queries, alternative operators were chosen. All prices were converted into The fixed-telephone sub-basket The fixed-telephone sub-basket refers to the monthly price charged for subscribing to the public switched telephone network (PSTN), plus the cost of 30 threeminute local calls to the same (fixed) network (15 peak and 15 off-peak calls). It is calculated as a percentage of a country’s average monthly GNI per capita, and also presented in USD and PPP$. USD using the IMF’s average annual rate of exchange The fixed-telephone sub-basket does not take into and into PPP$ using World Bank conversion factors. consideration the one-time connection charge. This choice has Prices for 2008, 2009, 2010 and 2011, which are also been made in order to improve comparability with the other used in chapter 3, were collected in previous years sub-baskets, which include only recurring monthly charges. (always during the second half of the respective year), If the monthly subscription includes free calls/minutes, then in national currencies, and converted using the average these are taken into consideration and deducted from the annual rates of exchange. total cost of the fixed-telephone sub-basket. 217 Annex 2. ICT price data methodology The cost of a three-minute local call refers to the cost of a three- important access technology in its own right in a large minute call within the same exchange area (local call) using the number of countries. Additionally, the conventional subscriber’s equipment (i.e. not from a public telephone). It thus fixed-telephone line is used not only for dial-up Internet refers to the amount the subscriber must pay for a three-minute access, but also as a basis for upgrading to DSL broadband call and not the average price for each three-minute interval. For technology, which in 2012 still accounted for the majority example, some operators charge a one-time connection fee for every call or a different price for the first minute of a call. In such cases, the actual amount for the first three minutes of a call is calculated. Many operators indicate whether advertised prices include taxes or not. If they are not included, taxes are added to the prices, so as to improve the comparability between countries.2 The sub-basket does not take into consideration the price of a telephone set (see Annex Box 2.1). of all fixed-broadband subscriptions. While more and more countries are moving away from narrowband/dialup Internet access to broadband, dial-up Internet access still remains the only Internet access available to some people in developing countries. Since the IPB does not include dial-up (but only broadband) Internet prices, and since dial-up Internet access requires users to subscribe to a fixed-telephone line, the fixed-telephone sub-basket The ICT Price Basket includes a sub-basket for fixed can be considered as an indication for the price of dial-up telephony because fixed-telephone access remains an Internet access. Annex Box 2.1: Rules applied in collecting fixed-telephone prices 1. The prices of the operator with the largest market share (measured by the number of subscriptions) are used. 2. Prices include taxes.3 3. Prices are reported and collected in national currency and then converted to USD and PPP$. 4. Where the operator proposes different commitment periods, the 12-month plan (or the one closest to this commitment period) is used. 5. If prices vary between different regions of the country, prices refer to those applied in the largest city (in terms of population). If that informtion is not available, the prices applying to the capital city are used. 6. The same price plan applies across all the indicators. For example, if a given Plan A is used for the fixed-telephone service, the elements in Plan A are also used for the monthly subscription and the local-call charges. 7. Local calls refer to those made on the same fixed network (on-net) within the same exchange area. 8. Prices refer to a regular (non-promotional) plan and exclude, among others, promotional offers, limited discounts or options such as special prices to certain numbers. 9. Peak is the busiest time of the day, usually during working hours of weekdays. If there are different peak prices, the most expensive one during the daytime is used. 10. If there are different off-peak prices, then the one that is the cheapest before midnight is used. If the only off-peak period is after midnight (valid during the night), then this is not used. Instead, the peak rate is used. 11. If no distinction is made between peak and off-peak prices, then the same price is used for the peak and off-peak indicators. 12. With convergence, operators are increasingly providing multiple (bundled) services, such as voice telephony, Internet access and television reception, over their networks. They often bundle these offers into a single subscription. This can present a challenge for data collection, since it may not be possible to isolate the prices for one service. It is preferable to use prices for a specific service; but if this is not possible, then the additional services that are included in the price are specified in a note. 218 Measuring the Information Society 2013 The mobile-cellular sub-basket SIM card. The basket gives the price of a standard basket of mobile monthly usage in USD determined by OECD The mobile-cellular sub-basket refers to the price of for 30 outgoing calls per month in predetermined ratios a standard basket of mobile monthly usage for 30 plus 100 SMS messages.4 The cost of national SMS is the outgoing calls per month (on-net, off-net to a fixed charge to the consumer for sending a single SMS text line and for peak and off-peak times) in predetermined message. Both on-net and off-net SMS prices are taken ratios, plus 100 SMS messages. The mobile-cellular into account. The basket considers on-net and off-net sub-basket is based on prepaid prices, although calls as well as calls to a fixed telephone5 and, since the postpaid prices are used for countries where prepaid price of calls often depends on the time of day or week subscriptions make up less than 2 per cent of all mobile- it is made, peak, off-peak and weekend periods are also cellular subscriptions. It is calculated as a percentage of taken into consideration. The call distribution is outlined a country’s average monthly GNI per capita, and also in Annex Table 2.1. presented in USD and PPP$. Prepaid prices were chosen because they are often the The mobile-cellular sub-basket is largely based on, but only payment method available to low-income users, who does not entirely follow, the 2009 methodology of the might not have a regular income and will thus not qualify OECD low-user basket, which is the entry-level basket for a postpaid subscription. Rather than reflecting the with the smallest number of calls included (OECD, 2010b). cheapest option available, the mobile-cellular sub-basket Unlike the 2009 OECD methodology, which is based on therefore corresponds to a basic, representative (low- the prices of the two largest mobile operators, the ITU usage) package available to all customers. In countries mobile sub-basket uses only the largest mobile operator’s where no prepaid offers are available, the monthly prices. Additionally, the ITU mobile-cellular sub-basket fixed cost (minus the free minutes of calls included, if does not take into account calls to voicemail (which in applicable) of a postpaid subscription is added to the the OECD basket represent 4 per cent of all calls), nor basket. To make prices comparable, a number of rules non-recurring charges, such as the one-time charge for a are applied (see Annex Box 2.2). Annex Table 2.1: OECD mobile-cellular low-user call distribution (2009 methodology) To fixed On-net Off-net Total Call distribution by time of day (%) 26.0 100.0 100.0 Call distribution (%) 17.0 56.0 Calls (number) 5.2 16.9 7.9 30.0 2.4 7.8 3.6 13.8 Peak 46.0 Off-peak 1.5 4.9 2.3 8.7 29.0 Weekend 1.3 4.2 2.0 7.5 25.0 Duration (minutes per call) 2.0 1.6 1.7 Duration (total minutes of calls) 10.4 27.0 13.4 50.9 N/A 4.8 12.4 6.2 23.4 46.0 Peak Off-peak 3.0 7.8 3.9 14.8 29.0 Weekend 2.6 6.8 3.4 12.7 25.0 Calls 30 calls per month SMS 100 SMS per month (50 on-net, 50 off-net) Note: N/A: Not applicable. Source: ITU, based on OECD (2010b). 219 Annex 2. ICT price data methodology Annex Box 2.2: Rules applied in collecting mobile-cellular prices 1. The prices of the operator with the largest market share (measured by the number of subscriptions) are used. If prices vary between different regions of the country, prices refer to those applied in the largest city (in terms of population). If that informtion is not available, the prices applying to the capital city are used. 2. Prices include taxes.6 3. Prices are reported and collected in national currency and then converted to USD and PPP$. 4. Prices refer to prepaid plans. Where the operator offers different packages with a certain number of calls and/or SMS messages included, the one that comes closest to the 30 calls and 100 SMS included is used. In countries where prepaid subscriptions account for less than 2 per cent of the total subscription base, postpaid prices may be used. In this case, the monthly subscription fee, plus any free minutes, will be taken into consideration for the calculation of the mobile-cellular sub-basket. 5. If per-minute prices are only advertised in internal units rather than in national currency, the price of the top-up/refill charge is used to convert internal units into national currency. If there are different refill prices, then the ‘cheapest/smallest’ refill card is used. If different refill charges exist depending on the validity period, the validity period for 30 days (or closest to 30 days) is used. 6. Special offers and plans with limited availability (for example, and among others, those reserved for a limited number of customers, or with a limited time period) are not taken into consideration. 7. If subscribers can chose “favourite” numbers (for family, friends, etc) with a special price, this special price will not be taken into consideration, irrespective of the quantity of numbers involved. 8. Prices refer to outgoing local calls. If different rates apply for local and national calls, then the local rate is used. If charges apply to incoming calls, these are not taken into consideration. 9. If prices vary between minutes (1st minute = price A, 2nd minute = price B, 3rd minute = price C), the sum of the different prices is divided by the number of different prices (for example: price per minute = (A+B+C)/3). 10. If prices vary beyond three minutes, the average price per minute is calculated based on the first three minutes. 11. If there is a connection cost per call, then this is taken into consideration in the formula for the mobile-cellular sub-basket, based on 30 calls. 12. If there are different off-peak prices, then the one that is the cheapest before midnight is used. If the only off-peak period is after midnight, then this is not used. Instead, the peak price is used. 13. If there are different peak prices, the most expensive one during the daytime is used. 14. If there are different weekend prices, the price that applies Sundays during the daytime is used (or the equivalent day in countries where weekends are not on Sundays). 15. If there is no weekend price, the average peak and off-peak price that is valid during the week is used. 16. If peak and off-peak SMS prices exist, the average of both is used for on-net and off-net SMS. 17. If calls are charged by call or by hour (and not by the minute), the mobile-cellular sub-basket formula will be calculated on the basis of 30 calls or 50.9 minutes. Similarly, if calls are charged by call or by number of minutes for a specific network/time of the day, this will be taken into account for that particular network/time of the day. 18. Where monthly, recurring charges exist, they are added to the sub-basket. 220 Measuring the Information Society 2013 The fixed-broadband sub-basket within a month, then the price per additional byte is added to the monthly price so as to calculate the cost of 1 GB of The fixed-broadband sub-basket refers to the price data per month. Preference should be given to the most of a monthly subscription to an entry-level fixed- widely used fixed (wired)-broadband technology (DSL, broadband plan. For comparability reasons, the cable, etc.). The sub-basket does not include installation fixed-broadband sub-basket is based on a monthly data usage of (a minimum of ) 1 Gigabyte (GB). It is calculated as a percentage of a country’s average monthly GNI per capita, and also presented in USD and PPP$. charges, modem prices or telephone-line rentals that are often required for a DSL service. The price represents the broadband entry plan in terms of the minimum speed of 256 kbit/s, but does not take into account special offers that are limited in time or to specific geographic areas. The plan does Where several offers are available, preference is given to the not necessarily represent the fastest or most cost-effective cheapest available connection that offers a speed of at least connection since often the price for a higher-speed plan is 256 kbit/s and 1 GB of data volume. If providers set a limit of cheaper in relative terms (i.e. in terms of the price per Mbit/s) less than 1 GB on the amount of data that can be transferred (see Annex Box 2.3). Annex Box 2.3: Rules applied in collecting fixed-broadband Internet prices 1. The prices of the operator with the largest market share (measured by the number of subscriptions) are used. 2. Prices include taxes.7 3. Prices are reported and collected in national currency and then converted to USD and PPP$. 4. Where operators propose different commitment periods, the 12-month plan (or the one closest to this commitment period) is used. 5. Only residential, single-user prices are collected. If prices vary between different regions of the country, prices refer to those applied in the largest city (in terms of the population). If that informtion is not available, the prices applying to the capital city are used. 6. The cheapest plan on the basis of 1 GB monthly usage and an advertised download speed of at least 256 kbit/s is selected. 7. The price for the most widely used fixed (wired)-broadband technology in the country (DSL, cable, etc.) is used. 8. The sub-basket does not include installation charges, modem prices or telephone-line rentals that are often required for a DSL service. 9. Prices refer to a regular (non-promotional) plan and exclude promotional offers or limited or restricted discounts. 10. With convergence, operators are increasingly providing multiple (bundled) services such as voice telephony, Internet access and television reception over their networks. They often bundle these offers into a single subscription. This can present a challenge for price data collection, since it may not be possible to isolate the prices for one service. It is preferable to use prices for a specific service; but if this is not possible, then the additional services that are included in the price will be specified in a note. 221 Annex 2. ICT price data methodology 3. Mobile-broadband prices To capture the price of lower-usage and higher-usage In 2012, for the first time, ITU collected mobile-broadband well as the use of different devices (handset and computer), prices through its annual ICT Price Basket Questionnaire.8 mobile-broadband prices were collected for six different The collection of mobile-broadband price data from ITU Member States and the methodology applied was agreed upon by the ITU Expert Group on Telecommunication/ ICT Indicators (EGTI)9 and endorsed by the tenth World Telecommunication/ICT Indicators Meeting (WTIM) held packages, and to cover prepaid and postpaid services, as types of plans (see Annex Table 2.2), based on a set of rules (see Annex Box 2.4). Two type of plans: (i) 250 MB, prepaid handset-based, and (ii) 250 MB, postpaid handset-based were not discussed in the analysis in chapter 3 because in in September 2012 in Bangkok, Thailand. The methodology the majority of countries included in the data collection reflects the lessons learned from a pilot data-collection (from both the developing and the developed world) there exercise presented in the 2012 edition of this report. were no specific plans for a 250 MB monthly data allowance. Annex Box 2.4: Rules applied in collecting mobile-broadband prices10 1. Mobile-broadband prices are collected from the operator with the largest market share in the country, measured by the number of mobile-broadband subscriptions. If this information is not available, mobile-broadband prices are collected from the mobilecellular operator with the largest market share measured by the number of mobile-cellular subscriptions. 2. Prices include taxes.11 3. Prices are reported and collected in the national currency and then converted to USD and PPP$. 4. Where operators propose different commitment periods for postpaid mobile-broadband plans, the 12-month plan (or the closest to this commitment period) is selected. 5. Only residential, single-user prices are collected. If prices vary between different regions of the country, prices refer to those applied in the largest city (in terms of population). If that informtion is not available, the prices applying to the capital city are used. 6. Prices are collected for one of the following technologies: UMTS, HSDPA+/HSDPA, CDMA2000 and IEEE 802.16e. Prices applying to WiFi or hotspots are excluded. 7. Prices are collected for both a) handset-based mobile-broadband subscriptions and b) computer-based mobile-broadband subscriptions. 8. Prices are collected for prepaid and postpaid services, for both handset-based and computer-based plans. 9. Prices are collected for the least expensive plan with a (minimum) data allowance of: i. 1 GB for computer-based subscriptions ii. 250 MB and 500 MB for handset-based subscriptions providing access to the greater Internet12 over (a minimum of ) 30 days. 10. Data volumes refer to both uploaded and downloaded data. 11. Time-based offers linked to ‘hours of use’ and not to data volumes are excluded. 12. Preference is given to packages that are not bundled (with voice or other services). If the plan chosen includes other services besides mobile broadband, this is specified in a note. 13. Prices refer to a regular (non-promotional) plan and exclude promotional offers and discounts limited in time or to special user groups (for example, existing clients). Special prices that apply to a certain type of device only (iPhone/Blackberry, iPad, etc.) are excluded. 222 Measuring the Information Society 2013 For plans that were limited in terms of validity (less than are targeted towards very low-volume, occasional 30 days), the price of the additional days was calculated usage – had to be excluded for comparability purposes and added to the base package in order to obtain the final since they were very expensive. price. Two possibilities exist, depending on the operator, for extending a plan limited in terms of data allowance • allowances available. Only mobile-broadband plans (or validity). The customer: (i) continues to use the service with limited data allowances were taken into account, and pays an excess usage charge for additional data13 or since unlimited offers are often very expensive in (ii) purchases an additional (add-on) package. Thus, for some comparison with limited offers and are not geared countries, prices presented in chapter 3 reflect calculated towards residential customers. Unlimited offers were prices of the base package plus an excess usage charge thus excluded for comparability purposes. (e.g. a base package including 400 MB plus the price for 100 MB of excess usage for a monthly usage of 500 MB), Only mobile-broadband services with unlimited data • Mobile-broadband offers only available bundled with or a multiplication of the base package price (e.g. twice other services, and very low data volumes included. If the price of a 250 MB plan for a monthly usage of 500 MB). standalone mobile-broadband data offers were not available, the price for a bundled offer (including voice The plans selected represent the least expensive offers that and SMS) was used. However, if the amount of data include the minimum amount of data for each respective included in bundled offers was very low (i.e. bundles mobile-broadband plan. The guiding idea is to base each would have to be multiplied several times to fit the plan on what customers would and could purchase given data threshold), these offers became very expensive the data allowance and validity of each respective plan. and had to be excluded for comparability purposes. Data availability and constraints In 2012, 29 out of ITU’s 193 Member States were not (yet) offering 3G services commercially. These countries were therefore excluded from the mobile-broadband price analysis. Other reasons for excluding countries from the mobile-broadband price analysis include: • • Only time-based mobile-broadband offers available. In some cases, mobile-broadband offers are billed not on the basis of a certain amount of data downloaded, but on the basis of hours of usage. These offers had to be excluded, as they are not comparable with volume-based mobile-broadband offers. In a very small number of countries time-based offers were the only ones available, and these countries were therefore excluded from the comparison. Only mobile-broadband offers billed on a pay-as-yougo/pay per day basis available. The mobile-broadband packages offered in some countries do not include a certain amount of data, but rather customers are charged per MB or per day of usage. In some cases, these pay-as-you-go-offers were nonetheless recorded, as prices were still competitive in relation to the given data thresholds; generally, however, such offers – which • Mobile-broadband offers available to business customers only. In some cases, mobile-broadband offers were not yet available to the general public and were thus excluded. In some countries, not all of the four different mobilebroadband offers (prepaid and postpaid handset-based and prepaid and postpaid computer-based) exist. While in some countries only prepaid mobile-broadband offers are available, in others operators offer mobile-broadband customers postpaid plans only. The data collection shows that prepaid only mobile-broadband offers are more common in developing countries: out of 100 developing countries, 17 had only prepaid handset-based offers and 12 only prepaid computer-based mobile-broadband services available. These include in particular low-income African countries, but also countries from the Asia-Pacific and Arab States regions. On the other hand, a number of European countries did not have prepaid mobile-broadband offers (out of 49 developed countries, eight had only postpaid handset-based plans and nine had only postpaid computerbased plans.). In addition, in a few cases operators did not offer a choice between handset-based and computer-based usage, but only one or the other. In these cases, prices are only recorded and analysed for combinations of plans for which data are available (see Annex Table 2.2).14 223 Annex 2. ICT price data methodology Annex Table 2.2: Number of countries for which mobile-broadband price data were available and collected Mobile-broadband prices Number of countries very high offers (unlimited) in terms of data allowance and validity were excluded from the data collection.15 Offers that exceeded the required data allowance by several orders of magnitude and were therefore much more expensive compared with other plans or with the plans in other 250 MB, prepaid handset-based 61 countries were also excluded.16 However, when analysing 250 MB, postpaid handset-based 52 and comparing mobile-broadband prices, it should be 500 MB, prepaid handset-based 126 borne in mind that offers are not always strictly comparable, 500 MB, postpaid handset-based 124 as they may include different amounts of data. This also 1 GB, prepaid computer-based 124 applies to bundled offers, which do not only include data, 1 GB, postpaid computer-based 127 but also voice and SMS services. Note: A total of 146 countries were included in the mobilebroadband data analysis. Source: ITU. Differences in advertised and actual speeds represent a further difficulty in comparing mobile-broadband plans. Real mobile-broadband speeds depend on several factors, such as distance (from the base station), location (inside a Data comparability The data collection revealed some difficulties in comparing mobile-broadband prices. As shown in Annex Table 2.2, the exact data caps defined for each plan were not always available in every country. The same is true, albeit to a lesser extent, for validity, which did not always reach the required 30 days minimum. In these cases, the cheapest alternative was used: either plans that include a higher amount of data were selected, or different packages (a base plan plus building or outdoors), movement (stationary or in motion) and the number of people accessing a network in the same location at the same time. Speeds are thus impossible to predict, are usually slower than advertised, and will vary for different users. Therefore, the quality of service that customers will get for what they pay can vary considerably. Furthermore, adequate speed is essential for the use of mobile-broadband services, and poor network quality could even prevent customers from consuming the full amount of mobile-broadband data they have paid for. excess charge) had to be combined. As a result, some of Other difficulties in comparing mobile-broadband price the plans recorded may exceed the minimum required data arise from certain restrictions on packages, which are data allowances of 500 MB and 1 GB. Plans that include a indicated in small print only. These include throttling of (much) higher amount of data are of course usually more speeds or the application of fair-usage policies, the terms expensive and thus the price is not directly comparable with (i.e. the data allowances included in an offer) of which are lower-volume plans. often not clearly specified. In other cases it may not be clear whether taxes are included in the advertised price or not. In order to improve the comparability of prices, as discussed Some operators make prepaid mobile-broadband offers above, very small offers (pay-as-you-go/ pay-per-day) and available only to existing customers. 224 Measuring the Information Society 2013 Endnotes The Expert Group on Telecommunication/ICT Indicators (EGTI) was created in May 2009 with the mandate to revise the list of ITU supply-side indicators (i.e. data collected from operators), as well as to discuss outstanding methodological issues and new indicators. EGTI is open to all ITU members and experts in the field of ICT statistics and data collection. It works through an online discussion forum (http://www.itu.int/ITU-D/ict/ ExpertGroup/default.asp) and face-to-face meetings. EGTI reports to the World Telecommunication/ICT Indicators Symposium (WTIS). 1 In some cases, it is not clear whether taxes are included or not and it was not possible to obtain this information from country contacts or operators; in such cases, the advertised price is used. 2 See endnote 2. 3 See OECD (2010b). 4 On-net refers to a call made to the same mobile network, while off-net and fixed-line refer to calls made to other (competing) mobile networks and to a fixed-telephone line, respectively. 5 See endnote 2. 6 See endnote 2. 7 Data for fixed-telephone, mobile-cellular and fixed-broadband have been collected since 2008 through the ITU ICT Price Basket Questionnaire, which is sent out annually to all ITU Member States/national statistical contacts. 8 See endnote 1. 9 These rules were presented to the Expert Group on Telecommunication/ICT Indicators (EGTI) in September 2012. EGTI agreed that ITU should collect prepaid and postpaid prices, for both handset- and computer‐based services, with the following volume allowances: 1 GB for computer‐ based and 250 MB as well as 500 MB for handset‐based usage. The EGTI proposals to measure mobile-broadband prices were endorsed by the tenth World Telecommunication/ICT Indicators Meeting (WTIM) held in September 2012 in Bangkok, Thailand. 10 See endnote 2. 11 In line with the ITU definition of active mobile-broadband subscriptions (ITU, 2011b) and the OECD Wireless Broadband Indicator Methodology (OECD, 2010a), only plans that allow access to the greater Internet via HTTP are considered. This excludes plans that provide access only to walled garden services (such as a limited number of websites, content and applications) or e-mail only services. It also excludes connections limited to a part of the Internet, such as those limited to the national Internet, or to intranets. 12 Some operators throttle speeds after the data allowance included in the base package has been reached. Customers can then pay an excess usage charge in order to continue to have full-speed connections. In some cases, even throttled speeds are still considered broadband (i.e. equal to, or greater than, 256 kbit/s according to ITU’s definition). 13 In the Democratic Republic of the Congo, for example, only prices for prepaid mobile-broadband services were available in 2012. Thus, the country is included for the prepaid handset-based and computer-based plans, but not for the postpaid handset-based and computer-based plans. 14 For some cases, pay-as-you-go and unlimited offers were retained, as those offers are still comparatively competitive overall. 15 For countries where the price for the respective plan exceeds 5 per cent of GNI p.c.: If the cap is five times as high as the required amount (i.e. 5 GB or 2.5 GB) and a) the price in USD is at least five times as high for the 1GB than for 500MB plans or b) the price in USD for 500MB plans is higher than for 1GB plans – the country is excluded for the respective plan. 16 225 Measuring the Information Society 2013 Annex 3. Statistical tables of indicators used to compute the IDI 227 Annex 3. Statistical tables of indicators used to compute de IDI Access indicators 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 228 Economy Albania Algeria Angola Antigua & Barbuda Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belarus Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Central African Rep. Chad Chile China Colombia Comoros Congo Congo (Dem. Rep.) Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Rep. Ecuador Egypt El Salvador Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Guinea Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran (I.R.) Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea (Rep.) Lao P.D.R. Fixed-telephone subscriptions per 100 inhabitants 2011 2012 10.5 9.7 8.5 8.8 1.5 1.5 39.6 38.7 24.3 24.3 18.6 18.8 46.8 45.7 40.3 39.6 18.1 18.4 20.9 21.3 0.6 0.6 51.4 52.5 44.0 46.3 43.1 42.9 1.7 1.7 3.7 3.6 8.7 8.6 25.5 23.5 7.4 7.8 21.9 22.3 19.7 17.2 31.6 30.4 0.8 0.8 3.7 4.0 3.3 3.6 53.0 51.9 14.9 13.9 0.1 0.1 0.3 0.3 19.5 18.8 21.2 20.6 15.2 13.2 3.1 3.1 0.3 0.4 0.1 0.1 26.1 21.2 1.3 1.3 40.1 37.4 10.6 10.8 36.3 33.1 21.7 19.9 45.1 43.5 2.0 2.0 10.4 10.5 15.1 15.5 10.6 10.2 16.5 16.9 1.1 1.1 35.2 33.5 1.0 0.9 15.0 10.1 20.1 16.5 63.4 61.9 1.5 1.1 2.8 3.5 31.0 29.6 63.0 61.8 1.1 1.1 50.4 47.8 0.2 0.2 0.3 0.3 20.1 20.4 7.9 7.7 61.0 60.6 29.4 29.8 58.9 57.6 2.6 2.5 15.8 15.5 37.1 38.0 45.2 43.8 46.3 46.7 36.4 35.5 9.9 9.6 51.1 50.8 7.4 6.7 26.3 26.5 0.7 0.6 60.9 61.9 1.7 1.8 Mobile-cellular subscriptions per 100 inhabitants 2011 2012 96.4 108.4 99.0 103.3 48.4 48.6 196.4 198.6 134.9 142.5 103.6 106.9 108.3 106.2 154.8 161.2 108.7 107.5 128.0 156.2 56.1 63.8 127.0 126.4 111.9 112.1 120.5 119.4 85.3 89.9 65.6 74.7 82.8 92.6 84.5 89.5 142.8 150.1 119.2 125.2 109.2 113.8 140.7 145.7 45.3 57.1 96.2 132.0 52.4 64.0 79.7 75.7 79.2 84.2 22.1 23.4 31.8 35.5 129.7 138.5 73.2 81.3 98.5 103.2 28.7 32.3 93.8 101.2 23.1 28.0 92.2 128.3 86.1 96.3 116.4 113.3 11.7 14.9 97.7 98.4 126.1 122.8 116.7 118.0 21.3 22.7 87.2 88.8 104.5 110.7 101.1 115.3 133.5 138.1 4.5 5.5 139.0 154.5 16.7 23.7 83.7 98.1 166.0 172.5 94.8 98.1 154.5 187.4 78.9 83.6 102.3 109.2 132.3 131.3 84.8 100.3 106.5 116.9 44.0 45.6 56.2 69.4 69.9 72.2 104.0 93.1 214.7 227.9 117.3 116.4 106.1 105.4 72.0 68.7 102.5 115.2 74.9 76.9 108.4 107.1 121.7 119.9 158.0 159.5 108.1 96.5 105.0 109.4 118.2 139.1 155.7 175.4 67.5 71.9 108.5 110.4 87.2 101.9 International Internet bandwidth Bit/s per Internet user 2011 2012 19’038 17’007 8’933 8’099 517 586 56’545 60’064 24’050 21’966 22’196 38’556 50’079 69’463 81’919 108’533 19’102 40’107 14’719 17’553 1’528 2’890 38’177 69’544 52’833 78’318 131’137 184’943 3’407 3’491 2’999 3’248 4’743 5’302 17’767 24’519 7’386 6’353 28’024 25’081 21’995 39’861 70’572 94’368 2’183 1’706 13’530 13’982 322 276 70’150 100’978 5’806 6’180 203 160 228 451 32’139 40’557 2’692 4’165 9’733 12’164 4’003 3’592 155 209 984 684 28’129 29’962 18’044 16’329 23’650 28’219 158 159 53’569 69’687 91’064 100’956 159’511 174’958 13’409 11’143 13’017 11’320 27’742 33’146 3’719 4’078 5’655 6’886 791 1’411 24’378 23’620 6’974 5’065 8’020 9’221 118’445 159’467 78’590 84’551 6’314 5’751 1’606 2’078 26’695 54’247 74’786 75’531 225 229 52’181 54’734 1’731 2’241 73 87 4’547 8’464 4’866 4’185 1’079’661 1’239’849 10’321 15’355 287’139 371’242 6’319 5’186 10’487 17’209 3’540 3’772 69’031 97’020 38’385 55’800 60’820 76’246 24’819 20’249 23’393 33’038 6’337 5’666 19’511 31’813 4’544 23’952 17’170 26’035 2’048 1’752 Percentage of households with computer 2011 2012 18.0 20.0 22.0 24.2 7.8 8.5 54.0 56.1 51.0 56.0 28.7 34.0 82.6 85.2 78.1 81.0 39.0 45.0 90.0 92.7 4.0 4.8 65.3 69.2 46.4 51.7 78.9 80.0 3.6 4.2 14.1 16.4 24.0 25.9 36.5 39.8 11.0 12.3 45.4 49.9 83.2 86.9 46.8 52.0 2.8 3.4 4.9 5.4 7.4 8.3 84.5 86.6 23.9 26.5 2.5 2.9 2.0 2.5 50.5 53.7 38.0 40.9 29.9 38.4 5.8 6.4 3.9 4.3 1.0 1.3 45.3 49.0 2.0 2.3 64.0 68.0 4.2 4.6 63.9 70.0 69.9 75.0 90.4 92.2 14.3 15.5 18.9 19.8 28.8 32.2 36.4 37.9 14.3 15.3 1.1 1.5 71.4 76.0 1.8 2.1 29.3 31.7 85.1 88.0 78.2 81.0 8.9 10.1 6.4 7.4 25.6 32.7 86.9 87.0 11.9 13.8 57.2 57.4 1.8 2.1 2.1 2.3 9.0 10.5 14.0 15.1 79.1 80.3 69.7 71.0 94.7 96.0 9.5 10.9 12.3 15.1 38.5 41.8 80.6 83.0 78.2 82.1 66.2 67.0 27.9 32.6 80.0 80.0 50.8 54.6 57.8 63.0 8.8 10.8 81.9 82.3 7.8 8.7 Percentage of households with Internet access 2011 2012 16.5 20.5 15.0 19.4 6.4 7.2 45.0 48.2 41.5 47.5 22.2 25.4 78.9 81.4 75.4 79.0 42.0 46.8 76.8 79.0 1.1 2.1 54.6 57.9 40.3 48.3 76.5 78.0 1.4 2.4 8.1 11.6 7.4 10.0 32.0 39.7 8.0 9.1 37.8 45.4 69.0 72.4 45.0 51.0 2.4 2.8 2.8 3.9 2.4 3.5 80.5 83.0 10.4 13.7 1.9 2.4 1.6 2.3 41.0 45.3 30.9 37.4 23.4 32.1 2.9 3.4 1.0 1.3 1.0 1.3 33.6 47.3 1.2 1.3 61.4 66.0 3.0 3.8 57.4 62.0 66.6 71.0 90.1 92.0 3.9 5.1 11.8 13.7 16.9 22.5 31.0 32.3 12.0 15.0 0.9 1.1 70.8 75.0 1.5 1.9 22.1 24.4 84.2 87.0 75.9 80.0 7.0 7.9 5.2 6.7 25.3 32.0 83.3 85.0 8.4 11.0 50.2 54.0 1.1 1.3 1.5 1.6 8.0 8.9 10.0 13.2 77.5 78.6 65.2 69.0 92.6 95.0 6.0 9.5 5.3 6.5 25.2 26.5 78.1 81.0 70.3 73.4 61.6 63.0 18.5 23.0 86.0 86.0 35.4 43.6 49.4 52.6 8.8 11.5 97.2 97.4 4.2 5.1 Measuring the Information Society 2013 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Economy Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macao, China Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique Myanmar Namibia Netherlands New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Seychelles Singapore Slovakia Slovenia Solomon Islands South Africa Spain Sri Lanka Saint Lucia St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Tanzania TFYR Macedonia Thailand Tonga Trinidad & Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Viet Nam Yemen Zambia Zimbabwe Fixed-telephone subscriptions per 100 inhabitants 2011 2012 23.0 22.4 20.3 20.5 1.8 1.9 0.1 0.0 21.9 20.3 54.1 51.0 29.9 28.6 0.6 0.7 1.1 1.4 15.7 15.7 7.5 7.1 0.7 0.7 55.6 54.8 2.0 1.8 28.7 26.6 17.2 17.4 33.3 34.3 6.7 6.2 11.0 10.1 0.4 0.4 1.1 1.1 6.8 7.2 42.8 42.4 42.6 42.1 4.9 5.4 0.5 0.6 0.4 0.3 31.0 29.5 10.1 10.5 3.2 3.2 15.7 17.7 5.6 5.6 11.1 11.5 3.7 4.1 17.9 16.0 42.5 42.6 16.5 16.9 21.8 21.9 30.9 30.1 0.4 0.4 16.5 16.7 2.7 2.6 37.3 30.2 32.1 33.1 38.9 37.8 19.3 17.8 42.9 40.4 1.5 1.4 8.2 7.9 42.8 41.1 17.1 16.3 20.4 20.7 20.8 17.7 1.1 0.9 15.9 15.5 6.3 4.0 47.5 45.5 59.8 56.7 20.9 20.9 0.3 0.4 20.4 19.7 9.6 9.1 28.7 28.6 21.7 21.2 11.5 10.3 20.7 18.6 1.3 0.9 28.1 27.1 23.1 24.3 53.3 52.6 45.8 44.0 28.5 29.8 6.9 7.0 24.9 25.6 11.5 11.4 4.3 4.3 0.6 0.6 2.8 2.3 Mobile-cellular subscriptions per 100 inhabitants 2011 2012 102.9 103.4 79.5 93.2 56.2 59.2 49.2 56.4 151.3 151.8 148.3 145.5 243.5 284.3 40.7 39.1 25.7 27.8 127.0 140.9 165.7 172.8 68.3 89.5 124.9 128.7 93.6 111.1 99.0 113.1 82.4 86.8 101.2 115.9 104.6 117.6 113.3 119.7 32.8 33.1 2.6 11.2 96.4 103.0 119.0 117.5 109.2 110.3 82.2 89.8 29.5 32.4 58.6 67.7 115.6 115.5 169.0 181.7 61.6 66.8 188.6 186.7 99.4 101.7 110.4 98.8 99.3 106.8 131.0 132.7 115.4 115.1 123.1 134.1 109.3 106.1 179.3 183.5 40.6 50.5 191.2 184.7 73.3 87.5 125.4 92.8 145.7 158.6 150.2 153.4 109.3 111.2 106.6 110.1 49.8 53.3 126.8 134.8 113.2 108.3 87.0 95.8 123.0 127.7 120.5 123.9 56.1 60.5 178.9 182.9 63.7 66.0 121.3 122.6 130.9 135.3 63.2 61.2 55.5 57.1 107.2 108.2 111.6 120.3 52.6 53.4 135.6 139.4 116.9 120.0 88.7 90.8 48.4 45.9 123.0 132.1 148.6 169.9 130.8 130.8 95.3 98.2 140.8 147.3 91.6 72.2 97.8 102.1 143.4 149.4 47.0 54.4 60.6 75.8 72.1 96.9 International Internet bandwidth Bit/s per Internet user 2011 2012 44’779 54’427 2’257 22’825 2’816 9’828 614 1’981 57’571 70’064 89’564 4’091’440 45’300 58’120 553 502 3’788 2’808 10’651 16’378 30’659 26’589 4’893 4’817 471’215 638’518 3’890 3’187 12’714 14’613 13’320 16’304 91’118 94’044 85’370 91’895 7’273 14’836 1’244 1’685 11’231 10’213 2’349 3’405 162’532 172’862 23’706 31’052 12’857 24’878 2’245 3’606 368 310 151’257 189’073 8’969 10’211 8’172 7’251 44’121 32’346 9’482 11’593 9’448 13’206 12’360 14’303 40’244 70’424 129’568 193’791 22’333 28’101 126’108 115’955 31’911 32’945 4’414 6’694 33’031 35’867 4’118 5’363 76’761 70’528 5’867 16’313 343’728 391’106 12’276 11’404 71’217 95’936 3’893 3’507 11’668 18’700 64’069 81’335 5’224 5’927 75’739 69’398 637’784 577’243 1’568 1’385 10’035 9’176 2’347 2’019 236’638 279’755 167’636 322’653 3’489 3’897 902 1’203 17’945 31’415 24’634 24’998 3’827 2’735 19’753 18’257 14’832 19’043 33’174 40’350 4’206 4’765 10’483 14’328 24’777 36’847 156’817 188’875 47’174 62’274 32’078 40’681 579 975 8’108 10’938 9’998 13’518 1’082 2’600 1’889 2’758 1’748 3’273 Percentage of households with computer 2011 2012 64.3 70.0 71.5 79.7 5.5 5.9 1.5 2.0 61.8 64.0 91.7 92.0 84.9 85.8 2.2 2.9 3.1 4.0 64.1 66.9 62.9 67.2 6.2 7.7 76.4 78.0 3.4 3.7 38.2 40.6 30.0 32.2 40.0 44.5 24.2 30.3 39.4 43.1 5.3 5.9 1.8 2.3 13.0 14.3 94.2 97.2 87.4 91.2 9.0 9.9 1.5 1.8 9.3 11.4 91.0 92.0 58.0 62.7 11.0 12.5 26.6 38.3 22.7 24.3 25.4 29.9 15.1 16.9 71.3 73.0 63.7 66.0 90.2 91.5 51.2 57.0 57.1 60.6 2.0 2.4 62.8 67.7 8.0 9.0 55.8 60.3 45.0 51.9 86.0 87.7 75.4 79.0 74.4 76.0 4.4 5.1 21.5 23.6 71.5 74.0 13.6 15.0 40.1 42.5 58.0 62.3 11.0 14.0 32.3 34.3 11.2 11.9 91.6 92.0 84.8 85.8 40.5 43.0 4.0 4.4 57.0 58.4 24.7 26.9 13.7 15.5 56.3 61.0 21.0 22.8 48.5 50.2 3.1 4.0 33.7 40.5 77.0 85.0 84.6 87.0 77.2 79.3 60.0 63.7 6.9 8.0 19.0 20.2 16.0 17.5 4.6 5.1 2.7 3.1 5.9 6.5 Percentage of households with Internet access 2011 2012 63.6 69.0 61.8 64.0 3.1 3.7 1.3 1.5 61.8 62.0 90.6 93.0 80.5 81.0 2.0 2.7 5.5 5.5 61.4 64.7 28.9 34.3 2.0 2.5 75.3 77.0 2.5 3.4 36.4 42.0 23.3 26.0 38.0 42.0 9.2 14.0 35.3 38.9 3.5 4.7 1.4 1.8 10.0 13.0 93.6 94.0 83.3 87.4 5.6 7.4 1.0 1.4 7.5 9.1 92.2 93.0 38.9 41.9 7.0 8.3 20.7 31.6 19.3 22.8 16.4 20.2 15.0 18.9 66.6 70.0 58.0 61.0 86.2 88.1 47.4 54.0 46.0 51.2 2.0 2.4 60.5 66.6 5.0 5.8 43.9 48.0 34.0 41.9 85.0 87.7 70.8 76.6 72.6 74.0 3.5 4.2 23.2 25.5 63.9 68.0 8.1 10.3 29.2 32.2 45.0 49.7 21.0 29.3 17.5 20.2 9.5 11.4 90.6 92.0 87.0 90.0 36.0 38.0 4.5 5.1 51.6 56.8 13.4 18.4 10.6 12.0 35.0 40.0 16.0 20.6 42.9 47.2 3.2 4.2 29.3 36.5 67.0 72.0 83.0 88.6 71.7 75.0 43.8 48.4 7.8 9.6 16.0 20.2 14.0 15.6 4.0 4.7 2.4 2.8 4.8 4.9 Note: Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database. 229 Annex 3. Statistical tables of indicators used to compute de IDI Use indicators Percentage of individuals using the Internet 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 230 Economy Albania Algeria Angola Antigua & Barbuda Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belarus Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Central African Rep. Chad Chile China Colombia Comoros Congo Congo (Dem. Rep.) Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Rep. Ecuador Egypt El Salvador Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Guinea Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran (I.R.) Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea (Rep.) Lao P.D.R. 2011 49.0 14.0 14.8 82.0 51.0 32.0 79.5 79.8 50.0 77.0 5.0 71.8 39.6 78.0 3.5 21.0 30.0 60.0 8.0 45.0 56.0 51.0 3.0 3.1 5.0 83.0 32.0 2.2 1.9 52.3 38.3 40.4 5.5 5.6 1.2 42.1 2.2 59.6 23.2 57.7 73.0 90.0 7.0 38.6 31.4 39.8 18.9 0.7 76.5 1.1 28.0 89.4 79.6 8.0 10.9 36.6 83.0 14.1 53.0 1.3 2.7 32.0 15.9 72.2 70.0 95.0 10.1 12.3 21.0 76.8 68.9 56.8 37.5 79.1 34.9 50.6 28.0 83.8 9.0 2012 54.7 15.2 16.9 83.8 55.8 39.2 82.3 81.0 54.2 88.0 6.3 73.3 46.9 82.0 3.8 25.4 34.2 65.4 11.5 49.8 60.3 55.1 3.7 4.9 5.7 86.8 34.7 3.0 2.1 61.4 42.3 49.0 6.0 6.1 1.7 47.5 2.4 63.0 25.6 61.0 75.0 93.0 8.3 45.0 35.1 44.1 25.5 0.8 79.0 1.5 33.7 91.0 83.0 8.6 12.4 45.5 84.0 17.1 56.0 1.5 2.9 34.3 18.1 72.8 72.0 96.0 12.6 15.4 26.0 79.0 73.4 58.0 46.5 79.1 41.0 53.3 32.1 84.1 10.7 Fixed (wired)-broadband subscriptions per 100 inhabitants 2011 4.0 2.8 0.1 6.7 10.4 5.0 23.9 24.6 10.7 13.8 0.3 22.1 21.9 32.8 0.0 1.8 0.7 9.7 0.8 8.6 5.7 16.4 0.1 0.2 0.0 31.8 4.0 0.0 0.1 11.6 11.6 6.9 0.0 0.0 0.0 9.1 0.2 19.6 0.0 18.9 15.8 37.6 1.2 4.0 4.2 2.2 3.3 0.0 24.8 0.0 2.7 29.5 36.0 0.3 0.0 7.5 33.1 0.3 21.6 0.0 0.0 2.6 0.7 31.6 22.2 33.9 1.1 1.1 2.4 22.0 24.8 22.1 3.9 27.6 3.2 7.4 0.1 36.9 0.7 2012 5.0 3.0 0.2 5.6 10.9 6.6 25.1 25.2 13.8 12.7 0.3 23.8 26.6 34.1 0.1 2.2 1.1 10.8 0.8 9.2 4.8 17.6 0.1 0.2 0.0 32.9 3.8 0.0 0.2 12.4 13.0 8.4 0.0 0.0 0.0 10.0 0.2 20.3 0.0 19.2 16.6 38.2 1.7 4.4 5.4 2.7 3.9 0.0 25.7 0.0 1.5 30.4 37.8 0.3 0.0 9.1 34.0 0.3 23.5 0.0 0.0 3.9 0.8 31.6 22.9 34.5 1.1 1.2 4.1 22.7 22.2 22.1 4.3 27.9 3.0 9.7 0.1 37.6 1.5 Active mobilebroadband subscriptions per 100 inhabitants 2011 8.8 0.0 1.5 19.7 12.4 26.1 80.7 46.1 24.3 17.7 0.4 0.7 18.9 19.5 0.4 0.9 2.9 11.0 11.8 21.6 6.3 30.8 0.0 2.2 0.0 39.4 3.0 0.0 0.0 18.0 9.5 3.8 0.0 0.5 0.0 10.0 0.0 46.8 0.0 31.0 51.4 81.0 0.0 7.9 10.6 24.0 3.6 0.0 45.8 0.3 15.5 87.1 44.0 0.0 0.5 21.7 34.9 23.0 36.3 0.0 0.0 0.1 2.6 56.0 18.3 57.5 1.9 22.1 0.5 61.1 40.6 44.5 1.5 104.0 6.5 38.4 0.3 105.1 0.6 2012 18.4 0.0 1.5 19.9 20.8 27.8 102.7 56.3 34.4 33.5 0.5 37.2 32.9 33.8 0.4 2.5 6.8 12.4 17.4 37.3 7.6 41.4 0.0 6.9 0.0 50.0 22.5 0.0 0.0 28.0 17.2 5.1 0.0 2.2 0.0 27.7 0.0 52.9 0.0 34.1 52.6 88.1 0.0 15.9 22.5 26.9 5.5 0.0 74.1 0.4 23.4 106.5 52.2 0.0 1.3 24.1 41.1 33.7 44.5 0.0 0.0 0.1 4.8 73.5 24.2 71.7 4.9 31.9 1.4 65.8 65.5 52.1 1.6 113.1 11.8 42.0 2.2 106.0 0.8 Measuring the Information Society 2013 Percentage of individuals using the Internet 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Economy Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macao, China Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique Myanmar Namibia Netherlands New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Seychelles Singapore Slovakia Slovenia Solomon Islands South Africa Spain Sri Lanka Saint Lucia St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Tanzania TFYR Macedonia Thailand Tonga Trinidad & Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Viet Nam Yemen Zambia Zimbabwe 2011 71.7 52.0 4.2 3.0 65.1 90.9 60.2 1.9 3.3 61.0 34.0 2.0 69.2 4.5 35.0 35.0 38.0 12.5 53.0 4.3 1.0 12.0 92.3 86.0 10.6 1.3 28.4 94.0 48.0 9.0 42.7 23.9 36.0 29.0 64.9 57.8 86.2 44.0 49.0 7.0 47.5 17.5 42.2 43.2 71.0 74.4 69.0 6.0 34.0 67.6 15.0 45.0 43.0 19.0 32.0 18.1 94.0 85.2 22.5 12.0 56.7 23.7 25.0 55.2 39.1 43.1 13.0 28.7 78.0 86.8 77.9 51.4 30.2 40.2 35.1 14.9 11.5 15.7 2012 74.0 61.2 4.6 3.8 68.0 92.0 64.3 2.1 4.4 65.8 38.9 2.2 70.0 5.4 41.4 38.4 43.4 16.4 55.0 4.8 1.1 12.9 93.0 89.5 13.5 1.4 32.9 95.0 60.0 10.0 45.2 27.1 38.2 36.2 65.0 64.0 88.1 50.0 53.3 8.0 54.0 19.2 48.1 47.1 74.2 80.0 70.0 7.0 41.0 72.0 18.3 48.6 47.5 21.0 34.7 20.8 94.0 85.2 24.3 13.1 63.1 26.5 34.9 59.5 41.4 45.1 14.7 33.7 85.0 87.0 81.0 55.1 36.5 44.0 39.5 17.4 13.5 17.1 Fixed (wired)-broadband subscriptions per 100 inhabitants 2011 20.4 4.9 0.1 0.0 18.9 32.9 24.7 0.0 0.0 7.4 5.4 0.0 30.0 0.2 9.8 10.3 10.0 3.2 1.8 0.1 0.0 0.8 39.0 25.8 1.4 0.0 0.1 35.4 1.8 0.4 7.9 0.9 4.0 1.9 14.7 21.0 8.7 15.2 12.2 0.0 5.6 0.7 11.3 10.4 25.6 13.6 24.0 0.4 1.8 23.8 1.7 12.1 12.9 0.0 4.6 0.2 32.1 39.9 0.6 0.0 12.6 5.5 1.2 11.5 5.1 10.3 0.1 7.0 11.0 32.7 27.4 13.5 0.5 6.1 4.3 0.4 0.1 0.3 2012 21.5 11.7 0.1 0.0 19.5 32.6 25.5 0.0 0.0 8.4 5.5 0.0 31.7 0.2 10.6 10.9 11.9 3.6 2.1 0.1 0.0 2.8 39.4 27.8 1.7 0.0 0.0 36.9 2.5 0.5 8.2 1.1 4.8 2.2 16.6 22.3 8.2 15.9 14.5 0.0 6.8 0.7 10.2 11.7 26.1 14.6 24.6 0.4 2.2 24.3 2.0 13.8 12.4 0.1 5.7 0.3 32.2 41.9 1.8 0.0 14.6 6.2 1.4 13.6 4.8 10.5 0.1 8.1 11.7 34.0 28.0 16.6 0.7 6.7 5.0 0.7 0.1 0.5 Active mobilebroadband subscriptions per 100 inhabitants 2011 37.9 11.0 9.2 0.0 11.0 66.7 216.1 0.1 3.1 12.3 17.5 0.3 36.1 5.1 12.6 7.1 3.6 17.4 8.0 1.0 0.0 21.0 52.6 53.9 0.8 0.4 10.0 77.3 38.7 0.4 14.5 5.3 1.5 3.4 53.2 27.4 70.4 14.2 48.0 1.1 41.6 1.6 35.1 5.2 115.6 35.7 29.6 3.8 19.8 41.8 2.3 0.0 0.0 15.8 0.3 1.1 97.4 35.7 1.0 1.2 19.2 0.1 0.1 2.4 2.4 8.8 2.8 4.4 21.8 52.6 69.8 22.0 18.4 4.3 18.0 0.1 0.2 14.9 2012 53.7 25.6 9.7 0.0 12.5 72.6 283.3 0.1 3.5 13.6 21.5 0.7 58.6 3.8 21.7 10.2 5.1 26.9 10.1 1.8 0.0 28.9 61.0 65.9 1.0 0.6 18.6 85.4 58.1 0.7 15.0 6.1 2.9 3.8 52.8 32.5 72.2 23.8 53.0 3.3 44.7 3.8 40.8 9.1 124.9 39.5 37.5 6.3 26.0 53.4 4.4 0.0 0.0 16.7 0.4 12.0 101.3 41.4 1.8 1.5 22.7 0.1 0.1 2.8 5.2 16.3 7.6 5.5 50.9 72.0 75.3 32.5 20.7 4.8 19.0 0.2 0.7 29.7 Note: Data in italics refer to ITU estimates. Source: ITU World Telecommunication/ICT Indicators database. 231 Annex 3. Statistical tables of indicators used to compute de IDI Skills indicators 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 232 Economy Albania Algeria Angola Antigua & Barbuda Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belarus Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Central African Rep. Chad Chile China Colombia Comoros Congo Congo (Dem. Rep.) Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Rep. Ecuador Egypt El Salvador Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Guinea Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran (I.R.) Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea (Rep.) Lao P.D.R. 2011 88.9 101.6 31.3 104.9 90.2 92.0 131.3 98.3 99.5 103.1 51.9 103.7 104.6 110.5 51.4 70.1 81.0 89.3 82.1 101.3 111.8 88.9 22.6 44.4 51.3 101.5 89.7 18.0 25.4 90.1 81.4 97.5 46.3 37.7 39.8 101.5 29.9 95.7 90.2 91.4 90.8 118.7 36.1 76.1 87.6 72.5 67.6 32.6 106.6 37.6 90.4 108.0 113.6 58.4 54.1 86.2 103.3 58.1 109.5 41.7 36.0 93.3 74.0 80.1 100.7 108.0 63.2 80.7 85.7 118.6 102.1 100.4 92.7 102.2 86.9 99.6 60.2 97.1 45.8 Secondary Gross enrolment ratio 2012 88.9 101.6 31.3 104.9 90.2 92.0 131.3 98.3 99.5 103.1 51.9 103.7 104.6 110.5 51.4 75.3 81.0 89.3 82.1 105.8 111.8 88.9 24.7 44.4 51.3 101.5 89.7 18.0 25.4 90.1 81.4 97.5 46.3 37.7 39.8 101.5 29.9 95.7 90.2 91.4 90.8 118.7 39.1 76.1 87.6 72.5 67.6 32.6 106.6 37.6 90.4 108.0 113.6 58.4 54.1 86.2 103.3 59.2 109.5 42.7 36.0 93.3 74.0 80.1 100.7 108.0 63.2 80.7 85.7 118.6 102.1 100.4 92.7 102.2 86.9 101.9 60.2 97.1 45.8 2011 43.9 32.1 3.7 14.5 74.8 48.9 79.9 70.5 19.6 29.8 13.6 61.8 85.2 70.6 10.6 8.8 38.6 38.1 7.4 25.6 19.6 56.9 3.9 14.5 12.4 66.6 20.4 3.0 2.3 70.7 26.8 42.9 9.7 9.0 7.5 43.0 8.3 54.1 80.4 48.3 64.9 73.7 4.9 34.2 39.8 27.8 24.6 2.4 64.3 7.6 61.8 95.2 57.7 6.6 4.1 30.0 46.2 12.1 89.4 11.3 2.7 12.0 20.6 60.4 59.9 78.6 17.9 24.9 48.6 68.1 62.5 65.0 26.0 59.7 37.8 40.8 4.0 103.1 17.7 Tertiary Adult literacy rate 2012 43.9 32.1 3.7 14.5 74.8 48.9 79.9 70.5 19.6 29.8 13.6 61.8 85.2 70.6 10.6 8.8 38.6 38.1 7.4 25.6 19.6 56.9 3.9 14.5 12.4 66.6 20.4 3.0 2.3 70.7 26.8 42.9 9.7 9.0 7.5 43.0 8.3 54.1 80.4 48.3 64.9 73.7 4.9 34.2 39.8 27.8 24.6 2.4 64.3 7.6 61.8 95.2 57.7 6.6 4.1 30.0 46.2 12.3 89.4 11.3 2.7 12.0 20.6 60.4 59.9 78.6 17.9 24.9 48.6 68.1 62.5 65.0 26.0 59.7 37.8 43.2 4.0 103.1 17.7 2011 96.8 72.6 70.4 99.0 97.9 99.6 99.0 99.0 99.5 94.6 57.7 99.0 99.6 99.0 28.7 52.8 91.2 98.0 85.1 90.4 95.4 98.4 28.7 73.9 71.3 99.0 84.9 56.6 35.4 98.6 95.1 93.6 75.5 66.8 66.8 96.3 56.9 98.9 99.8 98.7 99.0 99.0 73.0 90.1 91.6 72.0 84.5 68.9 99.8 39.0 95.1 99.0 99.0 89.0 51.1 99.7 99.0 71.5 97.3 25.3 55.3 85.0 85.1 99.0 99.0 99.0 62.8 92.8 85.0 99.0 99.0 99.0 87.0 99.0 95.9 99.7 72.2 99.0 72.7 2012 96.8 72.6 70.4 99.0 97.9 99.6 99.0 99.0 99.5 94.6 57.7 99.0 99.6 99.0 28.7 52.8 91.2 98.0 85.1 90.4 95.4 98.4 28.7 73.9 71.3 99.0 84.9 56.6 35.4 98.6 95.1 93.6 75.5 66.8 66.8 96.3 56.9 98.9 99.8 98.7 99.0 99.0 73.0 90.1 91.6 73.9 84.5 68.9 99.8 39.0 95.1 99.0 99.0 89.0 51.1 99.7 99.0 71.5 97.3 25.3 55.3 85.0 85.1 99.0 99.0 99.0 62.8 92.8 85.0 99.0 99.0 99.0 87.0 99.0 95.9 99.7 72.2 99.0 72.7 Measuring the Information Society 2013 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Economy Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macao, China Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique Myanmar Namibia Netherlands New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Seychelles Singapore Slovakia Slovenia Solomon Islands South Africa Spain Sri Lanka Saint Lucia St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Tanzania TFYR Macedonia Thailand Tonga Trinidad & Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Viet Nam Yemen Zambia Zimbabwe 2011 95.8 83.3 49.1 44.8 98.8 101.2 95.6 31.1 34.2 69.1 91.8 39.5 100.9 27.0 90.9 90.7 87.7 92.6 66.8 26.4 54.3 64.0 121.5 119.1 69.4 14.4 44.0 111.0 104.1 35.0 73.6 67.9 91.2 84.8 97.0 109.1 101.7 97.2 88.6 35.8 107.3 42.1 91.5 123.9 74.1 91.2 97.4 48.4 93.8 128.5 102.4 95.5 107.5 39.0 85.3 60.0 98.2 95.5 73.4 31.7 83.7 79.2 101.3 89.9 92.6 82.1 28.4 94.0 92.3 105.3 96.0 90.4 105.7 83.5 77.2 45.8 45.5 41.0 Secondary Gross enrolment ratio 2012 95.8 83.3 49.1 44.8 98.8 101.2 95.6 31.1 34.2 69.1 91.8 39.5 100.9 27.0 90.9 90.7 87.7 92.6 69.8 26.0 54.3 64.0 121.5 119.1 69.4 15.2 44.0 111.0 104.1 35.0 73.6 67.9 91.2 84.8 97.0 109.1 101.7 97.2 88.6 35.8 107.3 42.1 91.5 123.9 74.1 91.2 97.4 48.4 93.8 128.5 102.4 95.5 107.5 39.0 85.3 60.0 98.2 95.5 73.4 35.1 83.7 78.2 101.3 89.9 92.6 82.1 28.4 94.0 92.3 105.3 96.0 90.4 105.7 83.5 77.2 45.8 45.5 41.0 2011 57.4 57.7 3.5 4.4 69.5 18.2 67.8 4.1 0.8 42.3 13.0 6.1 35.3 4.7 32.4 28.8 39.4 57.2 14.1 4.9 14.8 9.0 65.4 82.6 19.5 1.5 10.3 74.4 28.7 8.3 45.7 34.6 43.0 28.2 72.4 65.5 11.6 58.8 75.9 6.6 41.2 7.9 50.4 2.6 43.8 53.9 86.3 16.1 15.8 82.6 14.3 15.1 18.2 5.5 12.3 5.9 73.1 56.7 15.7 2.1 38.6 47.7 16.1 11.5 37.1 55.4 9.1 81.7 30.4 59.7 94.8 63.2 8.9 78.1 24.4 10.2 2.4 6.0 Tertiary Adult literacy rate 2012 57.4 57.7 3.5 4.4 69.5 18.2 67.8 4.1 0.8 42.3 13.0 6.1 35.3 4.7 32.4 28.8 39.4 57.2 14.1 4.9 14.8 9.0 65.4 82.6 19.5 1.5 10.3 74.4 28.7 8.3 45.7 34.6 43.0 28.2 72.4 65.5 11.6 58.8 75.9 6.6 41.2 7.9 50.4 2.6 43.8 53.9 86.3 16.1 15.8 82.6 14.3 15.1 18.2 5.5 12.3 5.9 73.1 56.7 15.7 3.9 38.6 46.4 16.1 11.5 37.1 55.4 9.1 81.7 30.4 59.7 94.8 63.2 8.9 78.1 24.4 10.2 2.4 6.0 2011 99.8 89.6 75.8 42.9 99.7 99.0 95.6 64.5 61.3 93.1 98.4 33.4 92.4 58.6 88.8 93.5 99.0 97.4 67.1 50.6 92.7 76.5 99.0 99.0 78.0 28.7 51.1 99.0 86.9 54.9 94.1 93.9 89.6 95.4 99.7 95.4 96.3 97.7 99.7 65.9 87.2 49.7 98.0 91.8 95.9 99.0 99.7 82.0 93.0 97.7 91.2 99.0 99.0 71.9 94.7 87.8 99.0 99.0 84.1 67.8 97.4 93.5 99.0 98.8 79.1 94.1 73.2 99.7 90.0 99.0 99.0 98.1 99.4 95.5 93.4 65.3 61.4 83.6 2012 99.8 89.6 75.8 42.9 99.7 99.0 95.6 64.5 61.3 93.1 98.4 33.4 92.4 58.6 88.8 93.5 99.0 97.4 67.1 50.6 92.7 76.5 99.0 99.0 78.0 28.7 51.1 99.0 86.9 54.9 94.1 93.9 89.6 95.4 99.7 95.4 96.3 97.7 99.7 65.9 87.2 49.7 98.0 91.8 95.9 99.0 99.7 82.0 93.0 97.7 91.2 99.0 99.0 71.9 94.7 87.8 99.0 99.0 84.1 67.8 97.4 93.5 99.0 98.8 79.1 94.1 73.2 99.7 90.0 99.0 99.0 98.1 99.4 95.5 93.4 65.3 61.4 83.6 Note: Data in italics refer to ITU estimates. Source: UIS. Latest available data. 233 2013 I n t e r n a t i o n a l Te l e c o m m u n i c a t i o n Measuring Information Society Printed in Switzerland Geneva, 2013 ISBN 978-92-61-14401-2 Photo credits: Shutterstock Measuring the Information Society the *38501* U n i o n 2013
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